Viacom announced that its board approved a 21% increase in the company’s quarter dividend to 40 cents per share of Class A and Class B common stock.
The dividend increase follows a restructuring at the media company that included layoffs at most of its operating divisions and led to a charge against earnings of $785 million earlier this year to cover costs including severance payments.
The company said the restructuring would lead to savings and make the company more focused. At the time Viacom also suspended the stock buyback program.
“Viacom is deeply committed to returning capital directly to our shareholders while investing in high-quality programming, expanding in the U.S. and abroad, and developing new and innovative consumer and advertising initiatives,” said CEO Philippe Dauman. “Our strong balance sheet and substantial cash flow have allowed us to increase our quarterly dividend each year since it was initiated in 2010. We also look forward to resuming our buyback program by October.”
The dividend is payable July 1 to shareholders of record on June 15.