By: E&P Staff Dallas Morning News publisher A.H. Belo, whose stock has foundered since spinning off as a newspaper pure-play, cut its dividend in half Thursday.
Belo said its board had declared a quarterly cash dividend of 12 1/2 cents on its A and B class common stock payable Nov. 10 to shareholders of records as of Oct. 17.
"A. H. Belo's business strategy includes paying a dividend on a regular basis, and the board's desire is to remain a dividend-paying company," Belo Chairman, President and CEO Robert W. Decherd said in a statement. "However, it is important to recognize the impact of current industry and market conditions, and retain as much financial flexibility as possible as the company works through the remainder of 2008 and 2009. Payments of future dividends also depend on A. H. Belo's financing arrangements with its bank group."
In July, Goldman Sachs cuts its rating of Belo stock to "sell" from "neutral," and said it expected the board to cut its dividend in half at this September meeting.
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