Pep Boys Cuts Dividend As Losses Mount
- March 13, 2009
- Dividend News
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Pep Boys (PBY: 15.20 +0.13%) announced yesterday that they are cutting their quarterly dividend by 56% to $.03 per share.
The dividend cut drops the current dividend yield from 7.2% to 3.1%.
“Given today’s tight credit markets and the reduction in stock valuations, the Board of Directors determined that a reduction in our dividend is both prudent and appropriate at this time,” commented Chairman of the Board James Mitarotonda. “We will continue to review the dividend level quarterly and will make adjustments as warranted to account for improved market conditions and Company performance.”
The dividend will be payable on April 27, 2009 to shareholders of record as of April 13, 2009.
The company also announced that fourth quarter sales tumbled 10% as consumers deferred purchases on tires and other auto products. Net losses for the quarter are also expected to more than double from last year.
News of the preliminary quarterly results and dividend cut sent the stock down 2.4% in early morning trading to $3.64. To date, the stock had fallen only 10% while outperforming the 18% drop in the Dow Jones index.
