What do you mean one time dividend

A special dividend, also known as an extra dividend or one-time dividend, is a non-recurring dividend payment made to shareholders by a company. Unlike regular dividends, which are paid out on a regular schedule (such as monthly or quarterly), special dividends are typically declared and paid out only once, usually in response to a specific event or circumstance.

1. **Non-recurring nature**: Special dividends are not part of a company's regular dividend schedule and do not represent a commitment to ongoing dividend payments.
2. **Large dividend amounts**: Special dividends are often significantly larger than regular dividends, sometimes reaching 30% of a stock's current price.
3. **One-time payment**: The payment is made only once, and shareholders do not receive additional dividend payments on future schedule.
4. **Impact on stock price**: Special dividends can lead to a temporary increase in the stock price before the ex-dividend date, followed by a potential decrease if the dividend is not sustained.
5. **Financial considerations**: Companies may pay special dividends when they have excess cash on hand, want to alter their financial structure, or to reward shareholders after strong earnings.

Examples of special dividends include Microsoft's $3 per share dividend in 2004, which was a one-time payment and significantly larger than the company's typical dividend.