from the Wall Street Journal:
World Wrestling Entertainment Inc. (WWE) slashed its quarterly dividend by two-thirds, saying the decision strikes the right balance between investment and shareholder reward.
Shares fell 5.1% at $10.85 in after-hours trading. Through the close, the stock had fallen 39% in the last year.
The move goes against the tide of most dividend changes of late, as many company have raised or revived dividends as target seek ways to appeal to investors and tap cash piles they needn't preserve as vigilantly in the improving economy.
World Wrestling Entertainment Chairman and Chief Executive Vince McMahon called the cut "both prudent and appropriate."
"We believe this change strikes the right balance between returning capital to shareholders and investing in our future," McMahon said Thursday.
The company moved the dividend to 12 cents a share, with the decrease saving roughly $18 million each payout, based on its total number of Class A and Class B share outstanding as of March 2.
In its latest quarterly results, the company's income fell 28% despite a small revenue climb as costs weighed on the bottom line. Ticket sales for live wrestling events fell, as did demand for pay-per-view programs and home videos.
Does anybody else think Vince McMahon is the most ridiculous person in the world?
Just saying.
(I don't have any idea what slashing the dividend means)
