Tobacco giant Reynolds American is raising its quarterly dividend from $0.59 per share to $0.63 per share, a 6.8% increase, the company announced yesterday.
The quarterly dividend is payable on July 1 to shareholders of record at the close of business on June 10. Reynolds has made 36 consecutive quarterly dividend payments since going public in 2004 and this marks the 10th time it has raised the payout.
Reynolds American CFO Thomas R. Adams said: "This increase is in line with the company's policy of returning about 80% of net income to shareholders in the form of dividends, and underscores our commitment to returning value to shareholders."
The regular dividend payment equates to a $2.52-per-share annual dividend yielding 5.3% based on the closing price of Reynolds American's stock on May 9.
The article Reynolds American Increases Dividend 6.8% originally appeared on Fool.com.
Fool contributor Rich Duprey has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.