Barnes & Noble Brings Back Dividend After Approving SpinoffMatt Townsend
Barnes & Noble Inc. is reinstating its quarterly dividend, more than four years after eliminating the payout so it could invest in its ill-fated Nook e-book business.
Investors will receive a quarterly dividend of 15 cents a share, the New York-based company said in a statement Tuesday. The dividend will be paid on Aug. 17 to investors on record by the close of business on Aug. 7.
The retail chain is taking the step after approving plans to spin off its college-book store operations, which will be called Barnes & Noble Education Inc. When the company suspended its dividend in early 2011, the idea was to pump money into the Nook -- a rival to Amazon.com Inc.’s Kindle. The technology struggled to catch on, and Barnes & Noble ultimately pared back the division and outsourced the devices to Samsung Electronics Co.
The stock rose 1.9 percent to $28.50 in New York. Barnes & Noble shares have climbed 23 percent this year.
Investors had sent the stock tumbling when Barnes & Noble halted its quarterly dividend in February 2011. At the time, the company was paying 25 cents a share.
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