Flush with cash from its recent financial maneuvers and generating strong cash flow, Sinclair Broadcast Group is sending some of that money to its shareholders. The TV company’s board of directors has approved a special dividend of 43 cents per share.
“Given the expected 2010 results and our optimistic outlook for 2011, our Board of Directors has decided to declare and pay a special dividend in the amount of $0.43 per share. As you may recall, Sinclair had been a regular dividend payer since 2004, but had halted the dividend in the first quarter of 2009 in response to the recession, so we are pleased to once again be able to distribute a portion of our cash flow and return value to our shareholders. Our objective is to once again become a regularly paying dividend Company, as well as have the ability to repurchase shares, if warranted,” said a statement from CEO David Smith.
The cash dividend will be paid December 15th to shareholders of record on December 1st. In all, the dividend payout will cost approximately $34.5 million.
In the company’s quarterly conference call Smith was asked whether Sinclair might want to use its strong financial position for a major acquisition. Smith said, however, that under the current FCC ownership rules there’s not likely to be any TV group of sufficient scale come on the market that Sinclair would be permitted to buy.