Tuesday, February 23, 2010
Good news and bad news for Vornado common stockholders (VNO)
The good news is that your dividend was paid all in cash this time, after being split between cash and newly issued shares in 2009.
The bad news is that thanks to extra common shares outstanding - paid to existing holders in lieu of cash dividends, AND due to a common stock offering last year that helped pay continued preferred cash dividends - you get a smaller dividend of 65cents per quarter, off 32% from last year.
On an annual basis, Vornado Realty Trust's(VNO) dividend gives common stockholders a 4% yield. Not bad, but not rich. I suspect that holders of the common expect the dividend to be raised in coming years. This is a well run operation, and last year's poor treatment of common stockholders will hopefully light a fire under this management to get that dividend back up - especially considering the fact that upper management owns a HUGE amount of shares. When you think about it, they weren't really paying a 95cent dividend last year anyway, considering so much of it was in newly issued stock.
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Posted by Brendan Wagner at 8:28 AM