Arctic Cat Reinstates Dividend

Recreational vehicle maker launches new payout five years after canceling dividend.

By Rich Duprey – May 15, 2013 at 2:36PM EST

Following a five-year hiatus, snowmobile maker Arctic Cat (ACAT +0.00%) announced today the reinstatement of its regular dividend payment program, with the first payment of $0.10 per share to be made payable on June 14 to the holders of record at the close of business on May 31.

Arctic Cat last paid a dividend in 2008 ($0.07), but suspended the payout as the recession hit ATV, snowmobile, and recreational vehicle sales. The new dividend payment equates to a $0.40-per-share annual dividend yielding 0.8% based on the closing price of Arctic Cat's stock on May 14.

The company's board of directors also authorized a share repurchase program of up to $30 million of the company’s common stock.

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Rich has been a Fool since 1998 and writing for the site since 2004. After 20 years of patrolling the mean streets of suburbia, he hung up his badge and gun to take up a pen full time. Having made the streets safe for Truth, Justice, and Krispy Kreme donuts, he now patrols the markets looking for companies he can lock up as long-term holdings in a portfolio. His coverage reflects his passion for motorcycles, booze, and guns (though not enjoyed all at the same time...usually), but his writing also covers the broader sectors of consumer goods, technology, and industrials. So follow along as he tries to break down complex topics to make them more understandable and useful to the average investor. Have a story idea? Contact Rich here. I may not be able to respond to every suggestion, but I do read them all! Does an article needs a correction? Reach Rich here.

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Arctic Cat Reinstates Dividend

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