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.