Mentor Graphics (NASDAQ:MENT) has restarted its dividend policy. The company announced it will pay an annual rate of $0.18 per share of its common stock. The first installment of this will be a $0.045 per share payout on April 10 to shareholders of record as of March 22.
In the press release announcing the move, Mentor Graphics specified how else it is to utilize its capital. It quoted its CEO Walden Rhines as saying that the company "will continue to include strategic acquisitions and share repurchases while retaining a strong balance sheet and financial position."
It has been nearly 20 years since the firm last made a disbursement to its stockholders. This occurred in July 1993, when it dispensed $0.06 per share.
That annual distribution of $0.18 per share yields 1.1% at Mentor Graphics' current stock price of $17.05.
Fool contributor Eric Volkman has no position in Mentor Graphics. The Motley Fool has no position in Mentor Graphics. 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.