Communications Systems (JCS) Lowers Quarterly Dividend 75% to $0.04; Enters Amended, Restated Credit Agreement
- Donald Trump Sworn in as 45th U.S. President
- Wall Street ends higher as Trump becomes president
- Walgreens Boots Alliance (WBA) Said to Face Antitrust Concern for Rite Aid (RAD) Fix - Bloomberg
- Bristol-Myers Squibb (BMY) Says It Won't Pursue Accelerated U.S. Regulatory Pathway for Opdivo Plus Yervoy in Lung Cancer
- Apple (AAPL) Sues Qualcomm (QCOM) Over Patent Royalties in Antitrust Case - Bloomberg
Get the Pulse of the Market with StreetInsider.com's Pulse Picks. Get your Free Trial here.
Communications Systems (NASDAQ: JCS) declared a quarterly dividend of $0.04 per share, or $0.16 annualized. This is a 75% decrease from the prior dividend of $0.16.
The dividend will be payable on October 3, 2016, to stockholders of record on September 15, 2016, with an ex-dividend date of September 13, 2016.
The annual yield on the dividend is 2.3 percent.
The Company also announced that it has signed an amended and restated credit agreement, replacing a note that matures on November 1, 2016. Under this agreement, the Company has expanded its line of credit from $10 million to $15 million. Also, in addition to other cost cutting initiatives recently announced by the Company, the Board of Directors authorized a number of expense reduction measures, including a reduction in compensation paid to non-employee directors.
“We remain committed to returning cash to our shareholders while maintaining financial flexibility to invest in new product development and the growth of our businesses. Our new product sales have grown significantly over the past year and we aim to build on this success by continuing to invest in the business. We are pursuing a number of compelling opportunities that we believe will accelerate new product sales, deliver strong ROI and enhance long-term shareholder value,” commented Roger H.D. Lacey, Chief Executive Officer of CSI.
“Based on recent trades in the Company’s common stock in the last week, the declared dividend of $0.04 per share represents an annual yield of approximately 2.3%, which is in excess of the average yield of our industry peers. The $4.2 million in annualized cash savings generated by the reduction to our quarterly cash dividend, combined with the $5 million increase in our available credit line, will allow us to fund our growth plan while protecting our strong balance sheet,” Mr. Lacey concluded.
For a dividend history and other dividend-related data on Communications Systems (JCS) click here.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Bristol-Myers Squibb (BMY), Ono Enter Settlement and License Agreement with Merck (MRK) to Resolve PD-1 Antibody Patent Litigation
- Voyager Therapeutics (VYGR) Offers Update on Phase 1b Trial of VY-AADC01 for Advanced Parkinson's Disease
- Interpace Diagnostics (IDXG) Enters Pact With Israeli Specialty Services Provider Best Med
Create E-mail Alert Related CategoriesCorporate News, Dividends, Hot Dividends, Management Comments
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!