UPDATE: Best Buy, Dick's Sporting Goods, Others Give Early or Extra Dividends Ahead of Fiscal Cliff

--InterDigital, Dick's Sporting Goods unveil special dividends

--Lincoln Electric, Valspar boost and accelerate quarterly dividends

--Towers Watson unveils accelerated payout in lieu of dividends previously set for dates in 2013

(Adds information about Dick's Sporting Goods, Valspar, Towers Watson and other companies, and updates share movement in paragraphs six through 14.)

 
   By Tess Stynes and Kristin Jones 
 

Consumer-electronics retailer Best Buy Co. Inc. (BBY), wireless-technology company InterDigital Inc. (IDCC) and welding-products maker Lincoln Electric Holdings Inc. (LECO) on Wednesday unveiled plans to make payouts to shareholders before year's end, the latest companies to do so in anticipation of a potential "fiscal cliff" that would result in higher taxes in 2013.

The companies join a growing list of companies making quarterly dividend payments earlier than usual or unveiling special dividends ahead of the combination of higher taxes and spending cuts that would take effect in January if the government can't reach a deficit-reduction compromise. Lacking an accord, dividend-tax rates could increase from 15% to as much as 40%.

Eligible InterDigital shareholders will receive a special dividend of $1.50 a share as well as a regular quarterly dividend of 10 cents a share on Dec. 28. The company said it typically pays its quarterly dividend in late January. The special dividend is expected to cost the company an estimated $61.4 million.

Lincoln Electric's board approved a nearly 18% increase in the company's quarterly dividend to 20 cents a share from 17 cents a share and moved the payout date up to Dec. 28 from January of 2013, also citing the uncertainty about potential tax increases on dividends for next year. The increased payout to stockholders is estimated to cost the company an additional $2.5 million per quarter.

Best Buy is moving the payment of its quarterly dividend of 17 cents a share ahead by two days to Dec. 31 from Jan. 2. The biggest stake in Best Buy is held by founder and former chairman Richard Schulze. According to FactSet, he has about 71 million shares and as such would bring in about $12.1 million from the quarterly dividend.

Dick's Sporting Goods Inc.'s (DKS) board approved a special dividend of $2 a share for the company's common stock and Class B shares, in addition to its previously announced regular quarterly dividend. Both payouts to shareholders are set for Dec. 28. The retailer's special dividend is expected to cost a combined $245.3 million.

Valspar Corp.'s (VAL) board raised its quarterly dividend by 15% to 23 cents a share, an increase of three cents a share, and moved the payout date ahead to Dec. 28 from January. The paint maker's board also authorized the repurchase of 15 million of the company's shares. As of Dec. 4, the company had roughly 90 million shares outstanding.

Towers Watson & Co. (TW) moved the payment of its quarterly dividend, initially declared last month, to Dec. 26 from Jan. 15. The employee-benefits consultancy also will pay an accelerated dividend for its current fiscal year of 34.5 cents a share--also on Dec. 26--which would have been spread across payments in April, July and October of next year.

Aerospace and defense company General Dynamics Corp. (GD) is paying its $1 regular quarterly dividend early, on Dec. 26.

Risk management company ProAssurance Corp.'s (PRA) board has authorized a two-for-one stock split, which will take the form of a 100% stock dividend. After the split, shareholders will receive a special dividend of $2.50 a share, along with a regular dividend of 25 cents a share. The regular quarterly dividend--which would normally be paid in January--will be paid instead on Dec. 27, the same time as the special dividend.

Best Buy shares were up three cents at $12.11 after hours, while InterDigital rose 57 cents to $44.37 after hours, and Lincoln Electric was up 46 cents at $47.84.

ProAssurance closed at $90.22, and Valspar closed at $61.93; both were up fractionally in after-hours trading.

Towers Watson was down slightly at $53.27 after hours. General Dynamics was at $66.88, unchanged in after-hours trading.

Dick's Sporting Goods was up 2.4% in after-hours trading to $52.21.

Write to Tess Stynes at [e-mail] or Kristin Jones at [e-mail]

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