NY Times issues 1st dividend in 4 years
Newspaper has built cash reserves by selling properties, laying off staff
The New York Times Co. is resuming its quarterly dividend, four years after the publisher eliminated the payout during the financial crisis.
The company said Thursday it is paying four cents per share on Oct. 24 to owners of its Class A and Class B shares. Class B shares are primarily held by Ochs-Sulzberger family members.
New York Times Co. suspended its six-cent dividend in February 2009. The move saved the company about $35 million a year.
The company has since cut jobs and sold off assets. It is selling The Boston Globe for $70 million and also sold About.com and its stake in the Boston Red Sox. The company has built a cash reserve of nearly $1 billion US, offsetting around $694 million in debt and other costs.
The Times Co. reported a jump in profit in the April-June quarter, lifted by an increase in paid digital subscriptions. It was one of the first newspapers to adopt a digital paywall.
The company's stock has more than tripled since it eliminated the dividend. Times Co. shares rose about one per cent Thursday to close at $11.54 US.