Saga Communications shareholders of record as of today will be receiving a Christmas bonus of sorts come January 12, 2024, as the company’s Board of Directors is moving forward with a sizable special cash dividend.
Saga went ex-dividend on Tuesday (12/19), and anyone who had shares up to Wednesday’s Opening Bell is entitled to a $2.00 per share dividend.
When the dividend was first announced, a rise upward for Saga stock came.
Now that Saga went ex-dividend, it appears investors are pricing the bonus payment into the value of the company’s shares. As of 2:57pm Eastern, SGA was down 6.3% to $22.69 on higher than average volume.
The special cash dividend is funded by cash on Saga balance sheet and is in line with the Board of Directors’ goal of reducing Saga’s ongoing cash and short-term investment balances to approximately $25 million prior to future cash flows being recognized, the company said.
“The Board continues to have discussions relative to the right level of cash to maintain on our balance sheet and this may change based on global, national, and local economic conditions, changes in the radio industry, and the potential for strategic acquisitions,” Saga added.
Furthermore, the company’s board will continue to consider issuing a variable dividend upon release of its fourth quarter earnings “based on the adoption of the previously announced variable dividend policy,” based on the company’s available cash and is aligned with the goals of maintaining a strong balance sheet, increasing cash returns to shareholders, and continuing to grow the Company through strategic acquisitions.
Saga owns and operations 79 FM and 33 AM radio stations in markets ranging in size from Columbus, Ohio and Milwaukee to Ithaca, N.Y., and Yankton, S.D.