Toro’s $1.75 Special Dividend Marks Major Payout Opportunity for Shareholders
Toro Corp. (NASDAQ: TORO) is making headlines this morning after announcing a special dividend of $1.75 per common share, a move that represents more than 25% of its recent trading price. This payout gives shareholders an important choice: receive the dividend as cash or as additional company shares. The event stands out not just for its size, but also for the unique set of decisions and deadlines facing investors.
Shareholders Must Choose Between Cash or Stock—But Act Before Key Deadlines
Toro’s board of directors declared that the special dividend will be payable on January 16, 2026, to all shareholders of record as of December 16, 2025. Those who wish to receive shares instead of cash must submit a properly completed election form to Toro’s transfer agent by January 5, 2026, at 5:00 p.m. Eastern Time. If no form is received, the default is a cash payment.
The conversion rate for those opting for shares will use the company’s 20-day volume weighted average price (VWAP) through December 4, 2025, set at $3.84 per share (rounded from $3.8386). The table below summarizes the core details:
| Event | Key Dates | Details |
|---|---|---|
| Dividend Amount | N/A | $1.75 per common share |
| Record Date | Dec 16, 2025 | Must own shares by this date to receive dividend |
| Payment Date | Jan 16, 2026 | Dividend paid as cash or stock |
| Election Deadline | Jan 5, 2026 | Submit share election to transfer agent by 5:00 p.m. ET |
| VWAP (Stock Dividend Conversion) | Dec 4, 2025 | $3.84 per share |
Nasdaq's Due Bill Process—What Every Trader Needs to Know
Because the dividend exceeds 25% of the share price, Nasdaq will implement a "due bill" process for TORO between December 16, 2025, and January 16, 2026. This means anyone buying shares during this period is entitled to the full dividend in cash, regardless of the previous owner’s election. Sellers during this period will not receive the dividend, even if they had already filed an election form. The key takeaway: be aware of your position’s timing during the due bill window, as entitlements can shift based on trade settlement rules.
Why This Dividend Event Matters—And What Shareholders Should Watch
This special dividend stands out for several reasons:
- Size of the Payout: At $1.75 per share, the dividend represents a substantial portion of TORO’s recent stock price, potentially attracting both income and event-driven investors.
- Share or Cash Option: The ability to elect cash or shares—paired with the company’s right to switch to an all-cash payout until January 15, 2026—adds a strategic wrinkle for holders considering tax or reinvestment goals.
- Tax Implications: The company confirms the payout will be taxable, regardless of the chosen form, so shareholders may want to review their situations with a tax advisor.
- Market Mechanics: The due bill period can affect trading liquidity, ex-dividend calculations, and potential price adjustments as the payout date approaches.
Key Takeaway: Stay Proactive Ahead of Record Dates and Deadlines
Toro Corp.'s special dividend event offers both opportunity and complexity. Shareholders should be aware of the approaching deadlines, especially if interested in the share option or active in the market during the due bill window. The size of the payout and the mechanics involved could have meaningful impacts on both trading activity and investor strategies leading into early 2026.
For those interested in participating—or simply seeking to understand the evolving mechanics around significant dividend events—TORO’s move is one worth watching closely in the months ahead.
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