GO
Loading...

These 2 Special Dividends Would Be Huge: Pro

Although stocks seem to have priced in special dividends ahead of the looming "fiscal cliff," one trader thinks two behemoths could still announce them before year's end: Microsoft and Google.

"I still think that Google and/or Microsoft could declare a dividend that's bigger than all of the dividends declared so far," OptionMonster's Jon Najarian said Tuesday on CNBC's "Fast Money."

Najarian noted that the special dividends would not be doled out in 2013, which could be a negative.

This quarter, 103 companies have announced special dividends ahead of the so-called "fiscal cliff," which would trigger tax hikes and federal spending cuts if Washington lawmakers don't strike a budget agreement.

Rosecliff Capital's Mike Murphy said that special dividends aren't likely to cause much upward pressure on stocks going forward.

"Last week when Costco made this announcement, the stock had a really nice pop. It was up 5, 6, almost 7 percent on the news," he said. "You look today, Oracle moves there, dividends up, and the stock is flat to down on the day."

Shares of Coach, which also announced a special dividend, were flat.

"It's been so over-talked about, I think the market's pricing this in a lot, and the special dividends are not going to have the same impact a week, two weeks, three weeks ago," he said.

Written by Bruno J. Navarro, CNBC.com Producer.

Trader disclosure: On Dec. 4, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Joe Terranova is long VRTS; Joe Terranova is long TJX; Joe Terranova is long AAPL; Joe Terranova is long YUM; Joe Terranova is long SWN; Joe Terranova is long GLW; Joe Terranova is long DELL; Joe Terranova is long VZ; Joe Terranova is long XOM; Jon Najarian is long call spreads in FB; Jon Najarian is long call spreads in P; Jon Najarian is long call spreads in JNPR; Jon Najarian is long call spreads in NFLX; Jon Najarian is long call spreads in WLT; Jon Najarian is long call spreads in CLF; Jon Najarian is long call spreads in LEN; Jon Najarian is long call spreads in PHM; Jon Najarian is long call spreads in TOL; Jon Najarian is short puts in GLD; Jon Najarian is short puts in AGQ; Jon Najarian is long CME; Jon Najarian is long CBOE; Jon Najarian is long STSI; Jon Najarian is long GLUU; Steve Weiss is long BAC; Steve Weiss is long SODA; Mike Murphy is long AAPL; Mike Murphy is long BAC; Mike Murphy is long TGT; Mike Murphy is long TOL.

Symbol
Price
 
Change
%Change
MSFT
---
GOOGL
---
COST
---
ORCL
---
COH
---

Featured

Contact Halftime Report

  • Showtimes

    Halftime Report - Weekdays 12p ET
    Fast Money - Weekdays 5p ET