HCA Holdings Inc. plans to pay a cash dividend of $2 a share before the end of the year to help its shareholders avoid possible tax rate hikes with the “fiscal cliff” looming in Washington.
The Nashville-based hospital chain announced its plans Monday, about two weeks after distributing a special cash dividend of $2.50 a share.
“Potential future tax rates on dividends was just one of several considerations,” said David Anderson, HCA’s senior vice president of finance and treasurer. “Other factors in our decision to provide this return to our shareholders included the current low-interest-rate environment and market conditions.”
Tom Gallucci, an analyst with Lazard Capital Markets in New York, said the latest dividend HCA plans makes sense conceptually, although the move was a surprise.
“At least when it comes to investing, money in your pocket today is more valuable than money in your pocket tomorrow — no matter the tax implications,” he said.
