Gannett Cuts Stock Dividends

  • February 26, 2009
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.

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