Why WWE’s Dividend Deserves A Smack Down

Spending more than one makes is as American as, well, as subprime mortgages, but sooner or later it will catch up with you.

World Wrestling Entertainment’s (WWE) dividend payout in recent years has exceeded its net income.

WWE even discusses, in the risk factors portion of its 10-K filing, potential tax implications for its holders because of its habit of paying out more than it earns (which can reduce a stockholder’s cost basis for tax purposes; ouch).

It’s an odd state of affairs because, in some other respects, WWE is an attractive stock. WWE has a nice cash cushion...More?

source: forbes