The board of directors at Media General has declared a quarterly dividend of 12 cents per share. That’s a cut of nearly half from the previous dividend payout of 23 cents per share.
“Today’s action by the Board is a prudent response to the continued weak economic conditions impacting our businesses and industry, and allows cash flow to further reduce our debt. We remain positive on our position in our markets and we are continuing to take the necessary actions to implement our growth strategies to build shareholder value,” said President and CEO Marshall Morton.
The reduced dividend payment will be made December 15th to shareholders of record on November 28th.
RBR/TVBR observation: Not really surprising. In fact, the stock rose yesterday on the news that Media General was moving to conserve precious cash. Prior to this cut, the yield on the company’s stock was a hefty 6.6%, due to the stock price having been beaten down so much.