Despite Troubles WMG Declares Another Cash Dividend
Despite being battered on Wall Street and a less than stellar financial performance, Warner Music Group has declared another cash dividend to shareholders.
"The Board of Directors of Warner Music Group Corp. (NYSE: WMG) today declared a regular quarterly dividend of $0.13 per share of common stock, representing an aggregate quarterly dividend of approximately $19.4 million (based on outstanding shares of 149,525,591.17 as of August 3, 2007). The dividend is payable October 24, 2007, to stockholders of record as of the close of business September 24, 2007."
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Of course, WMG would get battered even more if it lowered or canceled its dividend payouts. Either could be a signal to investors that management expects poor future performance. And those dividends are already built into the price of the stock. Take away future dividends and the stock will drop.