US egg producer Cal-Maine Foods is introducing a variable dividend policy to replace its existing fixed dividend policy, with effect from the third quarter of the 2008 fiscal year, which ends on 1 March, 2008.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Cal-Maine said it would pay a dividend to shareholders of its Common Stock and Class A Common Stock on a quarterly basis for each quarter for which the company reports net income computed in accordance with generally accepted accounting principles in an amount equal to one-third of such quarterly income.
The Mississippi-based company added that following a quarter for which it does not report net income, it would not pay a dividend for a subsequent profitable quarter until the company is profitable on a cumulative basis computed from the date of the last quarter for which a dividend was paid.
“The management and board of directors of Cal-Maine believe a variable dividend policy more accurately reflects the results of our operations while recognising and allowing for the cyclicality of the egg industry,” said chairman and CEO Fred Adams, Jr. “Our solid balance sheet and performance history have placed us in this position, and we are pleased to have the opportunity to both reward our shareholders and continue to retain an appropriate level of earnings for future growth. The outlook for our business remains favourable for fiscal 2008, and we believe this new dividend policy is in the best interest of Cal-Maine shareholders.”
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData
