Brown Forman | Special dividend and 5% hike in 2021
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| Dividend Aristocrat Brown Forman has paid special dividends before |
Dividend Aristocrat Brown-Forman Corporation (BFB) will raise its quarterly dividend by 5% and will pay shareholders a $1.00 per share special dividend. This marks the 38th consecutive year of dividend increases by the Jack Daniel's maker.
Last year Brown-Forman hiked its dividend by 3%, being the 37th year of increases. The company has paid special dividends to shareholders before with a $1.00 per share special payment in April 2018.
The company increased its quarterly cash dividend on its Class A and Class B Common Stock by 5% to $0.1885 per share from the prior quarter’s $0.1795. As a result, the indicated annual cash dividend will rise from $0.7180 per share to $0.7540 per share. Stockholders of record on December 3, 2021, will receive the cash dividend on December 28, 2021. This marks the 78th year of paying quarterly dividends at the company. Last year Brown-Forman hiked its dividend by 3%.
The new indicated annual cash dividend of $0.7540 per share for BFB, yields 0.9% at a stock price of $80. Stockholders of record on December 4, 2020, will receive the cash dividend on January 4, 2021. Additionally, Brown-Forman’s Board of Directors declared a special dividend of $480 million on its Class A and Class B stock, or $1.00 per share, that will be paid on December 29, 2021 to stockholders of record on December 9, 2021.
Brown-Forman’s President and Chief Executive Officer Lawson Whiting said, “We are emerging from an unprecedented time in history. As it has throughout many generations, Brown-Forman’s business has remained strong and resilient, driven by the strength of our portfolio, the health of our balance sheet, and the agility of our people.”
Other Dividend Aristocrats recently announcing a dividend hike are Realty Income and Hormel Foods.
Brown-Forman Corporation is a spirit and wine company. The Company manufactures, bottles, imports, exports, markets and sells a range of alcoholic beverages. Its brands include Jack Daniel's, Finlandia Vodkas, el Jimador and Herradura Tequilas, Canadian Mist Canadian Whisky and Sonoma-Cutrer California Wines. Brown-Forman is a member of the prestigious Standard & Poor’s 500 Dividend Aristocrats Index, which is composed of companies that have increased their cash dividend every year for at least 25 years.
