Ethan Allen to pay special dividend, accelerate payment
Clint Engel -- Furniture Today, November 27, 2012
DANBURY, Conn. — Ethan Allen Interiors has declared a special cash dividend of 41 cents per share and accelerated the payment of its regular quarterly cash dividend of 9 cent per share to December from January.
Both dividends are payable Dec. 20 to shareholders of record Dec. 6.
Ethan Allen is joining a number of public companies, including Walmart, Dillard's and Las Vegas Sands, which have issued special dividends or moved January payments to December to protect the payments from expected tax hikes next year.
"We are pleased that our business performance and strong balance sheet makes it possible to make this 50-cents-per-share cash dividend to our shareholders in 2012," said Farooq Kathwari, chairman and CEO of the vertically integrated company with roughly 300 design center stores.
"This decision is a reflection of the company's commitment to share in the successes of the company with its shareholders and provides an opportunity for shareholders to have favorable tax treatment in 2012."