Stanley Furniture (STLY) Declares $1.25 Special Dividend; 51% Yield; Will Pay Additional Special Dividend

Stanley Furniture (NASDAQ: STLY) declared a special dividend of $1.25 per share.

The dividend will be payable on August 19, 2016, to stockholders of record on August 12, 2016, with an ex-dividend date of August 22, 2016.

The annual yield on the dividend is 51 percent.

The additional special dividend of $0.25 per share is expected to be declared once the company has obtained a revolving credit facility sufficient to fund any fluctuations in working capital.

“We are pleased to return capital to our shareholders through a cash dividend, as we believe we have sufficient cash on hand to operate our business," said Glenn Prillaman, President and Chief Executive Officer. "The additional flexibility of a credit facility will allow us to manage any short-term fluctuations in working capital to support our growth. Our Board believes in the business plan and we expect the next few quarters to show how we have successfully transitioned Stanley from a leader in domestic manufacturing into a profitable design, marketing and distribution company that utilizes a unique strategic overseas sourcing partnership."

The $1.25 per share special dividend represents about 50% of the company’s closing stock price on August 1, 2016. Pursuant to NASDAQ rules, when a dividend is declared in a per share amount that exceeds 25% of a company’s stock price, the date on which that company’s stock will begin to trade without the dividend, or ex-dividend, is the first business day following the payable date. The company expects that NASDAQ will apply this rule and that the ex-dividend date as set by NASDAQ will be August 22, 2016, the first business day following the payable date for the dividend. The company cautioned that shareholders of record on the record date who sell their shares before the ex-dividend date will not receive the special cash dividend.

For a dividend history and other dividend-related data on Stanley Furniture (STLY) click here.

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