Seagate Technology Eliminates Quarterly Dividend

Seagate Technology (STX: 19.27 +0.21%) announced today that they are suspending their quarterly dividend payment.

STX had previously paid a quarterly dividend of $.03 per share, which produced a 1.8% dividend yield. Eliminating the dividend is expected to save the company $60 million per year.

The dividend announcement comes as STX is pre-announced better than expected revenues and provided fourth quarter guidance that was above current consensus estimates.

STX’s shares finished the day down 4.7% to $6.34 on news of the dividend cut. However, the stock has gained 43% since the beginning of the year as it has outperformed the 5% gain in the Nasdaq.