insane dividends

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TORONTO (Reuters) - Sprott Inc (SII.TO: Quote) shares jumped nearly 8 percent to hit a 2-1/2-year high on Monday after the Canadian hedge fund manager declared a special dividend and said it would likely pay out another in the near future.

Toronto-based Sprott will pay 60 Canadian cents a share to shareholders of record at the close of business on January 19. It said it expects to follow that with a second payment once its annual financial statements have been audited and approved by the board of directors.

Sprott said last week that it generated more than C$193 million in gross performance fees in 2010, and said it planned to pay out a "substantial portion" to shareholders.

Shares of Sprott, which was founded by Bay Street contrarian investor Eric Sprott and taken public in 2008, were up 61 Canadian cents at C$8.59 on the Toronto Stock Exchange, their highest level since July 2008.

(Reporting by Cameron French; editing by Rob Wilson