Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of G&K Services
So what: The company is increasing its regular dividend 50% to $0.195 per share quarterly. The big news was a $6-per-share special dividend, which will be paid April 27 to shareholders of record on April 13.
Now what: This is a huge increase that will cost the company $113 million in total, which will need to be funded, at least partly, through debt. The company is also aggressively buying back shares, so giving back to shareholders is a priority. I'd like to see a little more cash cushion and earnings generation before spending this kind of cash, but investors think it's a good move nonetheless.
Interested in more info on G&K Services? Add it to your watchlist by clicking here.
Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.
Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.