Home BancShares, Inc.’s (Nasdaq:HOMB), parent company of Centennial Bank, Board of Directors declared a cash dividend of $0.13 per share payable Dec. 31, 2012, to shareholders of record Dec. 17, 2012.
This dividend is in addition to the previously declared regular quarterly cash dividend set to be paid Dec. 5, 2012 and is a result of the likelihood of increased tax rates on dividends in 2013.
The Company is still evaluating whether this dividend will be a special, one-time cash dividend or a cash dividend in lieu of the regular quarterly cash dividend for the first quarter of 2013.
Either way, it is a dividend that will be paid out of current earnings and profits in accordance with IRC Section 316, and therefore, will be entirely classified as a qualifying dividend for income tax purposes pursuant to Section 1(h).
"By taking this action before year end 2012, we can guarantee our shareholders benefit from the lowest possible dividend tax rates," said John Allison, Chairman.