A company planning to pay a cash dividend in excess of the regular dividend does not want investors to believe that such an extra dividend will be repeated. What will the firm likely call this extra dividend?

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A special dividend is typically a one-time payment of a larger-than-normal dividend, meant to communicate to investors that it is not part of the company's regular dividend policy and should not be expected to be repeated with any regularity. This is in contrast to a stock dividend (A), which is a distribution of additional shares of stock rather than cash, and a cash-liquidating dividend (B), which is a one-time payment that is meant to liquidate the company's assets and close down operations. A homemade dividend (D) is a strategy in which an investor creates their own income stream by selling a small amount of their portfolio holdings rather than relying solely on dividends from the underlying investments.

A Company Planning to Pay a Cash Dividend in Excess