Churchill Downs is among the growing number of publicly traded companies that have accelerated payment of dividends to get ahead of probable increased tax rates next year.
CDI announced Nov. 20 that its annual dividend of 72 cents per share on CDI's common stock will be payable Dec. 21, 2012, to shareholders of record on Nov. 28, 2012.
The announcement said the annual payment is historically paid in January, but the earlier date was selected "to take advantage of the existing 2012 tax rates, due to the uncertainty over the tax rates that will be in effect in 2013."
"The board of directors elected to increase this year's annual dividend payment to 72 cents per share of common stock, from the 60 cents per share based on the company's year-to-date performance," said CDI chairman and CEO Robert L. Evans. "This is the second year in a row the company has increased the dividend by 20%, having historically paid 50 cents per share in recent years."
In addition to its flagship Churchill Downs operations in Louisville, Ky., CDI owns and operates Calder Casino & Race Course in Miami Gardens, Fla., Fair Grounds Race Course & Slots in New Orleans, La., Arlington Park near Chicago, Ill., a casino resort in Greenville, Miss., and a casino hotel in Vicksburg, Miss. CDI also owns the online wagering company TwinSpires.com, United Tote totalisator company, online gaming company Luckity.com, and the multi-media poker company Bluff Media.