Cablevision to fork out quarterly dividend
Cablevision said today that its board of directors has agreed to pay a quarterly dividend starting Sept. 18.
Cablevision, which is controlled by the Dolan family, has faced unrest from investors and shareholders who have felt the company should either buy back stock or pay a quarterly dividend.
Cablevision, the nation’s fifth-largest cable operator with a footprint in the New York City metropolitan area, will pay 10 cents per share on its Class A and Class B stock to shareholders of record at the close of business on Aug. 26.
Today’s news comes on the heels of Cablevision CEO and President Jim Dolan’s recent meetings earlier this week with major stakeholders in the company.
Bethpage, N.Y.-based Cablevision said on July 31 that it would explore options to increase the company’s value.
On Aug. 5, Cablevision’s board of directors authorized the company’s management to explore potential strategies for bringing the market value of Cablevision’s common stock more closely in line with what it felt was the underlying operating performance of the company. Cablevision said then that the strategies could include dividends, stock buybacks, the spin-off of one or more businesses, and other potential strategies.
“Our strong performance and cash flow enable us to return value to shareholders through dividends,” Dolan said. “This action is a part of the process we have undertaken to enhance shareholder value as we continue to explore other options that we believe will help align the market value of the company’s common stock with Cablevision’s underlying operating performance.”
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