For the second year in a row, Buckle is belting out a big special dividend. Monday, the Nebraska-based retailer of medium-to-higher-priced apparel for young men and women declared a bonus payout of $1.80 a share, which translates into a distribution worth some $84 million. The special will be paid with the current quarterly common dividend of 20 cents a share on Oct. 27 to stockholders of record Oct. 15. The ex-date is Oct. 13. Yield: 2.47%. Factoring in the bonus payout, Buckle (BKE) yields 8%. The company paid its first dividend in 2003 (an adjusted four cents a share) and has been enhancing disbursements every year since. Directors decided on a special dividend rather than a big boost in the quarterly to avoid disappointing investors with a cut if business worsens. Last year's special payout was $2 a share, adjusted for a 3-for-2 stock split. Prior to that, Buckle paid a special of an adjusted $1.33 in January 2007. Robert Willens, whose online Willens Report surveys the latest developments in taxation and accounting, says Buckle's entire distribution probably will be treated as a dividend because the company has more than enough retained earnings (about $6 a share) to cover it. So the payout will be taxed at just 15% if investors hold the stock for more than 60 days of the 121-day period that begins 60 days before the ex-date. They cannot hedge their positions except by writing call options against them. Willens also says that the dividend can easily be stripped. That allows short-term capital gains, taxed at 35%, to be converted into qualified dividend income, taxed at 15%. Though large, Buckle's payout isn't big enough to be considered extraordinary. It is likely to be less than 10% of the value of the stock on the day before the ex-date. Once the holding-period requirements are met, the stock can be sold for a loss that reflects the amount of the dividend. This short-term capital loss can be used to offset short-term capital gains the seller has realized on other trades. Willens thinks this strategy will be used more frequently as the clock ticks down on former President Bush's tax advantages for dividend income.

Big dividends where also announced by corporate giants Lockheed Martin (LMT) and McDonald's (MCD) Thursday. Lockheed boosted its quarterly common payout 10.5%, to 63 cents a share from 57 cents, for a 3.23% yield. This is the eighth hike since 2003. Dividends have been ongoing since 1995. McDonald's declared a new quarterly of 55 cents a share, up 10% from 50 cents. Yield: 3.86%. Payouts have risen every year since the company initiated them in 1976.

Big dividends where also announced by corporate giants Lockheed Martin (LMT) and McDonald's (MCD) Thursday. Lockheed boosted its quarterly common payout 10.5%, to 63 cents a share from 57 cents, for a 3.23% yield. This is the eighth hike since 2003. Dividends have been ongoing since 1995. McDonald's declared a new quarterly of 55 cents a share, up 10% from 50 cents. Yield: 3.86%. Payouts have risen every year since the company initiated them in 1976.