Pinnacle Foods is reporting that its Board of Directors has approved a 16.7% increase in the company’s quarterly cash dividend, from $0.18 per share to $0.21 per share, effective with the upcoming Q4 2013 dividend. The fourth quarter dividend is payable on January 10, 2014 to shareholders of record at the close of business on December 2, 2013, according to a press release.
“The recent completion of our acquisition of Wish-Bone, which we expect to be highly accretive, has prompted us to review our quarterly dividend payment,” says Bob Gamgort, CEO. “The increase we are announcing today reflects the expected benefit of Wish-Bone and our strong operating cash flow performance since going public earlier this year. Our significant free cash flow generated from our business model enables us to create shareholder value through dividends, debt reduction, and business reinvestment.”
This announcement follows recent reports of the company’s Q3 2013 results, which highlighted strong growth in net earnings and high EPS guidance. Net sales increased 0.8% to $572.5 million, compared to net sales of $567.9 million in Q3 2012. North American retail net sales increased 2.2% to $482.2 million from $471.6 million in Q3 2012. In addition, the company expects pro forma diluted EPS for fiscal 2013 to be at the high end of its previous guidance range of $1.53 to $1.57.