Daktronics (NASDAQ:DAKT) will soon be distributing shareholder disbursements twice as frequently as before. The company announced that it's shifting from semiannual to quarterly dividend payouts, beginning with the next distribution, which is to be $0.09 per share paid on Sept. 20 to holders of record as of Sept. 6.
In the press release announcing the move, the company quoted CEO Jim Morgan as saying that it is due to "our cash and marketable securities position and our confidence in our ability to continue to generate free cash flow from the business over the long term."
Daktronics initiated its dividend in June 2005 with an annual distribution of $0.10 per share.
The now-quarterly dividend annualizes to $0.36 per share. That yields 3.3% at the company's most recent closing stock price of $10.97.
Fool contributor Eric Volkman has no position in Daktronics. Nor does The Motley Fool. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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.