Lionsgate Shares Jump on Raised Dividend
The 'Hunger Games' studio promises stock repurchases
Lionsgate shares rose Monday after the mini-studio increased its quarterly dividend and said share buy-backs are in the cards.
The Vancouver-based mini-studio bumped up its quarterly cash dividend from five to seven cents per common share.
That sent stock in Lionsgate up 49 cents, or by 1.5%, to $33.30 during early morning trading on the New York Stock Exchange.
"We’re pleased that our continued strong financial performance, combined with our excellent visibility, enables us to return greater value to our shareholders by increasing our quarterly dividend," Lionsgate CEO Jon Feltheimer and vice chairman Michael Burns said in a statement Monday.
"This is an important part of our strategy of allocating cash towards repurchasing our stock, growing our yearly dividend and re-investing in our content portfolio," they added.
The raised dividend comes ahead of Lionsgate's annual shareholders meeting in Toronto on Tuesday mid-way through the Toronto Film Festival.