Winmark pays special dividend
Winmark Corporation (WINA) will pay a special dividend of $3.00 per share in December 2020. This special dividend will be paid together with the regular quarterly dividend of $0.25 per share. In the previous quarter Winmark raised its quarterly dividend by 400.0 percent to 25 cents per share, following a cut of 80 percent earlier this year because of COVID-19 by the retail store franchisor. Lat year the company announced the 9th consecutive year of dividend increases.
The special dividend will be paid December 1, 2020 to shareholders of record on the close of business on November 11, 2020. A regular annual rate of $1.00 per share yields 0.6% at a stock price of $172.
In the company's press release announcing this special dividend Brett D. Heffes, Chairman and Chief Executive Officer, stated, “Today’s announcement of a $3 per share special dividend is our latest step in returning capital to our shareholders. Our strong balance sheet and favorable cash flow characteristics allow us to provide shareholders with this dividend, while preserving financial and operational flexibility for the future.”
Winmark also paid special dividends in 2014 and 2012. The company's regular dividend payment totals $4 million annually. Prior to this year's dividend cut Winmark had announced double digit dividend hikes every year.
Winmark Corporation is a franchisor of five retail store concepts that buy, sell and trade gently used merchandise and a limited amount of new merchandise to customers. The company's franchised retail brands are Plato's Closet, Once Upon A Child, Play It Again Sports, Style Encore and Music Go Round. Winmark operates franchised stores across the United States and Canada and also provides franchise consulting and advisory services through Winmark Franchise Partners. Also the company operates a middle-market equipment leasing business through our wholly owned subsidiary, Winmark Capital Corporation. Additionally, Winmark operates a small-ticket financing business through its wholly owned subsidiary, Wirth Business Credit, Inc.