NY Times issues 1st dividend in 4 years

The New York Times Co. is resuming its quarterly dividend, four years after the publisher eliminated the payout during the financial crisis.

Newspaper has built cash reserves by selling properties, laying off staff

The New York Times has resumed paying a quarterly dividend, four years after the financial crisis. ( Carlo Allegri/Reuters)

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.

Comments

To encourage thoughtful and respectful conversations, first and last names will appear with each submission to CBC/Radio-Canada's online communities (except in children and youth-oriented communities). Pseudonyms will no longer be permitted.

By submitting a comment, you accept that CBC has the right to reproduce and publish that comment in whole or in part, in any manner CBC chooses. Please note that CBC does not endorse the opinions expressed in comments. Comments on this story are moderated according to our Submission Guidelines. Comments are welcome while open. We reserve the right to close comments at any time.