Usually when a company raises the amount of its normal dividend, the investor expectation is that this marks a sustained increase.
In the case of a special dividend, however, the company is signalling that this is a one-off payment.
Therefore, special dividends do not markedly affect valuation or yield calculations, unless the amount is large—in which case they do markedly affect valuation as they are a direct and large depletion of the assets of the company.
[2] Subsequently, in 2020 NortonLifeLock Inc (NASDAQ: NLOK) paid a $12/share special dividend as part of its goal to return the after-tax proceeds from the sale of its Enterprise Security assets to Broadcom.
To be entitled to a special dividend of less than 25% of the share price, you need to be a stockholder on the record date.
Therefore, option exchanges have formulas to adjust contracts appropriately when special dividends are paid out.
Regular cash dividends do not result in such option contract adjustments.