The new payout for shareholders of Salem Communications will be a nice round figure, representing a one and a half cent increase over its most recent dividend level. The company says the new dividend level is a reflection of increased free cash flow.
The new shareholder benefit, payable to holders of both Class A and Class B common stock, is rising from $0.035 to $0.05.
The distribution is expected to be made 4/1/13 to shareholders of record as of 3/25/13.
Salem CEO Edward G. Atsinger III commented, “The decision of our board to increase our cash distribution will be welcome news to shareholders and other stakeholders. The 2013 distribution represents less than 20% of our expected free cash flow for the year. This meaningful increase is due to the growth in free cash flow that we expect in 2013 as a result of our stable business performance and substantial reduction in interest expense from our recently completed refinancing.”