Brown-Forman (BF.A) Declares $0.34 Quarterly Dividend; Approves Two-for-One Stock Split

Brown-Forman (AMEX: BF-A) declared a quarterly dividend of $0.34 per share, or $1.36 annualized.

The dividend will be payable on July 1, 2016, to stockholders of record on June 6, 2016, with an ex-dividend date of June 2, 2016.

The annual yield on the dividend is 1.9 percent.

The company's Board of Directors approved a two-for-one stock split for all shares of Class A and Class B common stock to be paid in the form of a stock dividend.

Paul Varga, the company’s Chief Executive Officer commented, “The recommended two-for-one stock split reflects the company’s confidence in our ability to sustainably grow our sales, earnings, and cash flow over the long term, and marks the seventh split in 35 years.”

Implementation of the stock split is subject to approval by holders of Class A common stock at the company’s annual meeting of stockholders scheduled to be held on July 28, 2016. Class A stockholders will be asked to approve an increase in the number of authorized shares of the company’s Class A common stock from 85 million to 170 million. The number of authorized shares of Class B common stock does not need to be increased in order to effectuate the stock split.

If approved, the record date for the stock split is anticipated to be on or about August 8, 2016. Each stockholder of record of Class A common stock on the close of business on the record date will receive one additional share of Class A common stock for each share of Class A common stock they hold. Likewise, each stockholder of record of Class B common stock on the close of business on the record date will receive one additional share of Class B common stock for each share of Class B common stock they hold. The new shares are expected to be distributed on or about August 18, 2016. Additional details of the annual meeting and the proposed stock split will be included in the company’s proxy statement, which is expected to be filed in June.

Brown-Forman’s common stock began trading in 1933 following the repeal of Prohibition, and has split twelve times since the original listing. Assuming there had been no splits over that time period, one share of Class B stock would be worth approximately $134,000 today.

For a dividend history and other dividend-related data on Brown-Forman (BF.A) click here.

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