Location-based services provider Ituran Location & Control (NASDAQ:ITRN) will pay a second-quarter distribution of $0.14 per share, down sharply from the $0.33 per share it paid in April, the company announced yesterday.
The board of directors said the quarterly dividend is payable on July 11 to the holders of record at the close of business on June 26. It also said the distribution won't undermine its ability to keep performing as it is or to "meet its undertakings when due."
While retained earnings will fall to $28.2 million from $31.2 million after payment of the dividend, the board emphasized it has $38.3 million in cash on hand as of March 31, as well as current assets (excluding cash, cash equivalent, and deposits in trust) of $60.6 million and current liabilities of $48.9 million.
The regular dividend payment equates to a $0.56-per-share annual dividend yielding 3.4% based on the closing price of Ituran's stock on May 13.
Ituran primarily offers stolen-vehicle recovery devices and tracking services.
Fool contributor Rich Duprey has no position in any stocks mentioned. The Motley Fool owns shares of Ituran. 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.
More from The Motley Fool
Ituran Finds a Way to Make a Bigger Dividend Distribution
Stolen vehicle locator device maker slashed its payout 57% last quarter
The Global Portfolio's First Two Buys
The first two buys for our real-money global portfolio.
Ituran Location & Control Passes This Key Test
Look here for a clue.