Gannett Co. is slashing the dividend on its stock for the first time in its history, reports AP. The largest U.S. newspaper publisher, which owns 80 newspapers, including
USA Today, and TV
stations, said the quarterly payment will fall to 4 cents per share, a 90% drop from 40 cents--a level maintained since October 2007. The cut will result in a $325 million annual savings for the
company. Before the reduction, the dividend yield--which is the annual dividend divided by the price of the stock--stood at about 40%. The yield now computes to 4.3%, based on Wednesday's closing
stock price of $3.75.
