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FORT MYERS -- Alico Inc. (symbol: ALCO) will resume dividend payments to shareholders later this year, roughly two years after it ended such payouts after its stock value fell by roughly 50%.
"Although we continue to operate in an uncertain economic environment, our board recognized our agribusiness performance was solid in fiscal 2011 and we believe our shareholders should benefit from this performance,” says CEO JD Alexander in a release.
From 1984 to 2003, the Fort Myers-based land management firm rewarded investors with annual dividend payouts. Then, after electing not to make a payout in 2004, the company began making quarterly payments in summer 2005.
Quarterly payments were kept up through 2009, but at the end of that year the company's stock price had fallen 56% from its high point in summer 2007.
Alico says it will pay a 12-cent dividend to shareholders of record as of Oct. 31, representing a dividend yield of about 2.3% relative to the firm's current stock price.
Alico generated $3.5 million in operating income in its most recent fiscal year, which ended Sept. 30. The company's 2010 revenues were down 11% from the prior year, to $79.6 million.
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