Software consulting specialist Formula Systems (FORTY -0.60%) announced this morning a dividend of $0.37 per share, which would total $5.5 million in the aggregate.
The board of directors said the dividend is payable on July 18 to the holders of record at the close of business on July 2. In accordance with Israeli tax law, the dividend is subject to withholding at source at the rate of 30%, if the recipient is a holder of 10% or more of the company's stock, or 25% for everyone else.
The dividend will be paid in U.S. dollars with respect to the shares of Formula traded on the Tel Aviv Stock Exchange and its American depositary receipts traded on the NASDAQ Global Select Market.
The regular dividend payment equates to a yield of 1.6% based on the closing price of Formula Systems' stock on June 7. Headquartered in Israel, Formula operates through three directly held subsidiaries: Matrix, Magic Software, and Sapiens.