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Tuesday, November 27, 2012

Las Vegas Sands Corp. (NYSE:LVS) Shares Boosted By Surprised Dividend Announcement


Las Vegas Sands Corp.(NYSE:LVS), which operates casinos, late Monday, said that it would be paying a special dividend of $2.75, paying out about $2.26 billion to its shareholders by the end of the year.

The company said the dividend will be payable Dec. 18 to shareholders who appear on the records of the company as on Dec. 10.

Chairman Sheldon Adelson said returning capital to shareholders is a priority for the company.

This year many companies have resorted to paying higher income in the form of dividends to shareholders so that they will not be burdened with having to pay higher tax on dividends from January onwards.

Income on dividend has been raised and this will be effective from the New Year.

Since 2003, investors have paid a maximum 15 percent on dividend income. But that historically low rate will expire in January unless Congress and President Barack Obama reach a compromise on taxes and government spending. As it stands, dividends will be taxed as ordinary income in 2013, the same as wages, so rates will go up depending on which income bracket a taxpayer is in. For the highest earners, the dividend rate would jump to 43.4 percent, Associated Press said in a report.

Las Vegas runs a chain of casinos across the Pennsylvania, Singapore and Macau.

Shares of the company soared 5.72% to $46.55.

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