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.
Fool contributor Eric Volkman has no position in Ebix. The Motley Fool recommends Ebix. The Motley Fool owns shares of Ebix. 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.