Gannett Slashes Dividend By 90%

Gannett Co. (GCI: 13.18 -0.53%) is slashing their quarterly dividend by 90%. The new dividend payment will be $.04 per share, down from $.40 per share. The dividend will be payable on April 1, 2009 to shareholders of record as of March 6, 2009.

 

The dividend cut reduces the company’s dividend yield from 40% to a more reasonable 4.3%.

 

Reducing the dividend payout is expected to save the company $325 million. That savings will be reallocated to pay down debt and shore up their balance sheet.

 

Gannett is the largest newspaper company in the U.S., but has really felt the effects of the declining advertising market as well as the migration from print publications to online.

 

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