Alico slashes dividend

FORT MYERS — Agriculture company Alico cut its quarterly dividend in half to six cents per share in a move by the new majority owners of the company to conserve cash.

The dividend cut comes on the heels of a 30% drop in revenues and a net loss of $700,000 in the quarter ended Dec. 31. A group of private-equity investors that included 734 Agriculture acquired a 51% stake in Alico late last year from the heirs of Florida citrus baron Ben Hill Griffin Jr.

“The board of directors of Alico has decided that it is in the best interests of our company and our shareholders to reduce the dividend payment,” says Clayton Wilson, Alico's CEO, in a statement. “The board believes that retaining additional cash increases our flexibility to reinvest in our business and pursue growth opportunities consistent with our mission.”

The reduced dividend will be paid to shareholders of record as of June 30 and distributed on July 14. Alico's shares are traded on Nasdaq (symbol: ALCO; recent price: $37).