Ebix Raises Dividend by 50%

Ebix (NASDAQ: EBIX  ) has announced a sharp increase in its quarterly dividend. The company will pay $0.075 per share on February 28 to stockholders of record as of February 15. The new payout is a 50% lift from the $0.05 Ebix had paid in the last three quarters. Prior to that, the company disbursed $0.04 per share.

At an annualized rate, the new payout represents a yield of 1.8% on Ebix' current stock price.

In spite of high margins on growing profitability, the company's shares trade near their one-year low at the moment. This may be at least partially due to the news disclosed last autumn that it was under investigation by the SEC over its accounting practices.


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  • Report this Comment On February 01, 2013, at 8:31 PM, Dinibal wrote:

    Why has the SEC not made a statement regarding this supposed probe? As a prudent investor/shareholder I would find this information to be material, however, the SEC has not made any statements that I can find regarding these accusations. EBIX has denied them.

  • Report this Comment On February 02, 2013, at 4:57 PM, TMFVolkman wrote:

    Most likely because it isn't a formal investigation. The SEC might have felt obligated to start looking into the company following several lawsuits:

    http://www.bloomberg.com/news/2012-11-05/ebix-accounting-pra...

  • Report this Comment On February 07, 2013, at 10:04 AM, bobspeldbackwrds wrote:

    Full disclosure: I have a long position in EBIX. There was never a news story saying EBIX was under investigation by the SEC. There were rumors put out by individuals who have short positions with EBIX saying EBIX was being investigated by the SEC. The SEC never made any comment about it and never denied nor confirmed an SEC investigation was being done. Erik Volkman needs to do a better job of researching this, otherwise the rumors continue to spread. I don't know if the SEC is investigating EBIX or if they are not investigating EBIX. All I know is as time marches on, we haven't heard a peep about it from the SEC. If these rumors turn out to be false, there should be an SEC investigation of the individuals spreading these rumors.

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