Why Cango Stock Was Soaring Earlier Today
Shares of Cango (NYSE: CANG) were up 10.6% as of 1:22 p.m. ET on Wednesday after the Chinese automotive transaction service platform operator declared a special dividend to shareholders on Tuesday.
The dividend was set at $0.50 per ordinary share, or $1 per American depositary share, and will be paid on Nov. 23 to investors who owned shares as of Oct. 24. The special dividend represents a high yield of 40% on the current stock price and explains why investors were rushing to buy the stock.
However, risk-averse investors should be cautious before following the herd.
Source Fool.com
