Cogent Communication (CCOI) Raises Quarterly Dividend 2.9% to $0.35; 4.5% Yield

Cogent Communication (NASDAQ: CCOI) declared a quarterly dividend of $0.35 per share, or $1.4 annualized. This is a 2.9% increase from the prior dividend of $0.34.

The dividend will be payable on December 11, 2015, to stockholders of record on November 20, 2015, with an ex-dividend date of November 18, 2015.

The annual yield on the dividend is 4.5 percent.

During the quarter ended September 30, 2015 Cogent purchased 431,000 shares of its common stock for $12.2 million at an average price per share of $28.20 under Cogent's stock buyback program and return of capital program. Under Cogent's return of capital program, Cogent plans on returning additional capital to its shareholders each quarter through either stock buybacks or a special dividend or a combination of stock buybacks and a special dividend. The aggregate payment under this program is a minimum of $12.0 million each quarter and this amount is in addition to Cogent's regular quarterly dividend payments. Since the amount paid for stock buybacks in the third quarter was greater than $12.0 million Cogent will not pay a special dividend payment in the fourth quarter of 2015 under its return of capital program. The return of capital program was planned to continue until Cogent's net debt to trailing twelve months EBITDA, as adjusted, ratio ("Net Leverage Ratio") was within a range of between 2.50 to 3.50 to 1.00. Cogent's Net Leverage Ratio was 2.98 at September 30, 2015 and was 2.77 at June 30, 2015. The indentures governing Cogent's notes limit Cogent's ability to return cash to its stockholders. Consequently, on November 2, 2015, Cogent's board of directors suspended the $12.0 million quarterly minimum payment under the return of capital program. As Cogent's cash flow increases the indenture covenants permit additional distributions to stockholders.

The payment of any future dividends and any other returns of capital will be at the discretion of Cogent's board of directors and may be reduced, eliminated or increased and will be dependent upon Cogent's financial position, results of operations, available cash, cash flow, capital requirements, limitations under Cogent's debt indenture agreements and other factors deemed relevant by Cogent's board of directors.

For a dividend history and other dividend-related data on Cogent Communication (CCOI) click here.

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