Reynolds American Raises Dividend and Splits Stock

Excellent news today from Reynolds American (RAI)! The company has announced that it will split its stock 2-for-1 in mid-November. This means that shareholders will own twice as many RAI shares and the stock’s price will drop in half.

The other good news is that Reynolds is raising its quarterly dividend by 8.9%. The company will bump up the dividend from 45 cents per share to 49 cents per share (that’s adjusted for the split). Based on yesterday’s closing price, that translates to a forward yield of 6.5%.

Finally, Susan Ivey, currently Chairman, President and CEO of RAI, will retire next February. RAI’s board has elected Daniel (Daan) M. Delen, currently chairman, president and CEO of R.J. Reynolds Tobacco, to be President- and CEO-elect of RAI, and a member of the Board of Directors, effective Jan. 1, 2011.

Posted by on October 15th, 2010 at 9:38 am


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