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CCA to Pay Special Dividend

By Eric Volkman - Apr 8, 2013 at 9:52PM

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In advance of its planned transformation into a REIT, the prison operator will dispense a chunky one-time payout.

The planned transformation of Corrections Corporation of America (CXW 3.94%) has produced an early reward for shareholders. The company has announced that it will hand out a special dividend of $6.63 per share of its common stock. It expects the disbursement to be made on May 20 to shareholders of record as of April 19.

The dividend is being paid as a precursor to CCA's transformation into a real estate investment trust or REIT, which requires the company to distribute its undistributed earnings and profits before this year.

The special dividend yields 17.5% at CCA's current stock price of $37.97.http://finance.yahoo.com/q?s=CXW&ql=0 

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