Shareholders, worried earlier this month that CBS was hoarding cash for an acquisition, lauded the company’s decision to boost its dividend for the third time this year, according to the Wall Street Journal.
CBS Corp.’s board of directors raised the company’s dividend by 11% yesterday, underscoring its strategy of diverting investors’ concerns about the slow-growing nature of its business. According to a story in the Wall Street Journal, investors had reacted negatively when the company reported second quarter earnings on Aug. 3 without raising its dividend then.
Yesterday’s increase brought the dividend to 20 cents per share, up from 18. Earlier this year, the dividend had been 14 cents. The move means CBS Corp. chairman Sumner Redstone’s divident income will rise to $69 million this year.