This special dividend could deliver a windfall gain, and it’s not too late to buy in

Diversified industrial company Tasmea Ltd (ASX: TEA) has just declared a special dividend, in more good news for shareholders who are already sitting on gains of more than 150% over the past 12 months.

Still time to buy

But for those who aren’t holders of the company, there’s still the potential to buy in and receive the dividend, with the company setting an ex-dividend date of Wednesday, 10 June.

But it gets even better – should the share price hold up.

Shareholders will be able to take part in the company’s dividend reinvestment plan, which offers new shares in the company at $6.85 per share.

Calculated at today’s share price of $8.04, that would constitute an immediate windfall gain of 17.4%.

Tasmea said it encouraged shareholders to take advantage of the dividend reinvestment plan, and “the company’s founders and executive directors have indicated their intention to participate”.

The company said the decision to grant a special dividend was spurred by its strong performance.

As it said:

The decision to return capital to shareholders at this time is underpinned by a combination of strong performance metrics, continued strategic momentum and the Board’s wish to acknowledge and reward the loyalty of their long-term shareholders. The Company remains well positioned to deliver organic and programmatic growth opportunities across key sectors, including resources, energy, infrastructure, and water, and continues to experience strong customer demand as a consequence of essential maintenance and the electrification of its customers’ operations.

Tasmea said it expected continued profitable growth, and it expected to issue guidance for FY27 by the end of June once budgeting processes had been finalised.

Data centre move

News of the special dividend followed Tasmea earlier in the week, announcing the acquisition of Maxim Group for up to $254 million.

That deal would be paid for with an initial $72 million in shares and $112 million in cash, with further earn-out payments to come in the years up to FY29.

The company said regarding the deal:

Maxim Group is a market-leading specialist electrical contractor headquartered in Victoria, with established credentials across Data Centres, Major Government Infrastructure and Battery Energy Storage System (BESS) and Renewable Energy markets. Maxim has delivered over 450 projects, employs approximately 600 full-time staff including a deep cohort of HV-accredited and rail-inducted specialists. Maxim is currently active on approximately 30 projects across its core end-markets. The acquisition represents a defining step in Tasmea’s programmatic acquisition strategy and establishes Tasmea as a leading specialist electrical platform with national scale and direct exposure to Australia’s structurally growing Data Centre, BESS and Major Infrastructure markets.

The post This special dividend could deliver a windfall gain, and it’s not too late to buy in appeared first on The Motley Fool Australia.

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Motley Fool contributor Cameron England has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.