Frontline Maintains Dividend After Posting Better Than Expected Earnings
- May 28, 2009
- Dividend News, Dividend Stocks, High Yield Dividend Stocks
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Frontline (FRO: 4.95 -2.37%) announced today that they are maintaining their quarterly dividend payment of $.25 per share.
Frontline’s current dividend yield now stands at 4.4%.
The dividend will be payable on June 23, 2009 to shareholders of record as of June 9, 2009.
The dividend announcement came as FRO announced better than expected first quarter earnings results of $.97 per share. Wall Street was only expecting earnings of $.70 per share.
While Frontline wishes to maintain their high dividend payments, the company indicated that they are closely monitoring the financing market “whereby Frontline’s dedication to a high dividend payout ratio can be kept.”
“Our goal is to pay out surplus cash to our shareholders and to generate competitive returns for our shareholders with quarterly dividend payments. Our dividend payments are based on present earning, market prospects, current capital expenditure program as well as investment opportunities.”
The markets responded positively to the earnings beat and the dividend announcement, sending FRO’s shares up 4.9% to $23.95 in early morning trading. Since the beginning of the year, Frontline’s shares are down almost 19%.
