The stock is down about 3% in initial trading today following the company’s decision to pay investors a $1 a share dividend, worth about $450M, down from $2 it awarded last year. Dish Network said that it will pay the cash dividend on December 28 to shareholders of record as of December 14. Many investors thought Dish would offer a lot more at time when many companies are paying special dividends: Investors fear that such payments will be hit with higher taxes in 2013 if lawmakers can’t avoid the so-called fiscal cliff, a combination of tax hikes and budget cuts scheduled to hit in January. Indeed, Wells Fargo’s Marci Ryvicker says that some Dish investors hoped for as much as $5 a share. She says Dish Chairman Charlie Ergen probably held back because he doesn’t know the requirements the FCC will apply to some wireless spectrum that the satellite company is acquiring. “Our view — had the [rules] been approved, the dividend would have been higher,” she says.
Dish Network Shares Fall After It Announces Lower Than Expected Special Dividend
For all of Deadline’s headlines, follow us @Deadline on Twitter
Sign up for Newsletters
Trending Now on Deadline
More From Lieberman
- Now That He's At Carmike, Can Bud Mayo Lead Theaters' Alternative Content Revolution?
- Cable Milestone: Operators Have More Broadband Subs Than TV Ones
- Look Out Gannett: Carl Icahn Buys 6.6% Stake
- Warren Buffett Sends A Mixed Message To John Malone As He Buys Into Charter But Unloads Starz
- Citing “Insulting” Criticism, Comcast And Time Warner Cable Withdraw Funding For Dinner Honoring FCC Commissioner
- Televisa Partners With MiTu To Develop Spanish-Language Digital Content