Journal Communications Shaves Dividend

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By: E&P Staff Journal Communications is adopting the strategy of many of its peers by substantially reducing its dividend. The board of directors at the company declared a quarterly dividend of 2 cents per share to be paid on March 6 to shareholders of record as of Feb. 24.

In December the company paid a quarterly dividend of 8 cents per share.

"The board made the decision to reduce the dividend in order to help maintain financial flexibility in this difficult environment," Steven J. Smith, chairman of Journal Communications, said in a statement. "Given the uncertain economic outlook, we believe that this action will allow the company to direct a greater portion of our cash flow to debt reduction."


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