Published on 20 Oct 2023 on Zacks · via Yahoo Finance

Bassett (BSET) Hikes Dividend by 12.5%, Boosts Investors' Value

Bassett Furniture Industries, Incorporated BSET inched up 0.38% in the after-hours trading session on Jul 12 after it hiked the quarterly dividend by 12.5%, maintaining its commitment to regularly boost stockholders’ value.This leading manufacturer and marketer of high-quality home furnishings announced a quarterly cash dividend hike, paying a dividend of 18 cents per share on Aug 25, 2023, to shareholders on record as of Aug 11. The company has a dividend payout of 36% and a dividend yield of 4.08%, based on the closing share price of $15.69 on Jul 12.This move reflects the company’s sound and stable financial position and commitment to rewarding shareholders in this unprecedented economic condition.

Enhancement of Shareholder Value

Bassett has been actively managing cash flows and returning considerable free cash to investors through share repurchases and dividends. On Jul 14, 2022, it increased its quarterly dividend to 16 cents per share, marking a 14% rise from the year-ago period’s levels. Earlier, on Mar 11, 2022, the company announced a special dividend of $1.50 per share of common stock.During the the first half of fiscal 2023, cash provided by operations were $6,413 versus cash used in operations of $8,946 reported in a year ago period. The company expects to aggressively use operating cash flow and balance sheets in its business.Apart from dividend distribution, Bassett regularly buys back its shares to boost shareholders’ value. In the first half of fiscal 2023, it repurchased 209,337 shares of its stock for $3,450 under the share repurchase program.Investors always prefer a return-generating stock. A high-dividend-yielding one is highly coveted. Stockholders are always looking for companies with a track record of consistent and incremental dividend payments.