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Sara Lee Boosts Dividend

TSC Staff

Sara Lee (SLE Quote) increased its common stock dividend, raising the annualized payout by 21% to 75 cents a share, starting with the current quarter.

Based on its prior annualized dividend rate of 62 cents, Sara Lee previously declared a quarterly dividend of 15.5 cents, payable Oct. 1 to stockholders of record Sept. 2.

As a result of the dividend increase, the company declared a supplemental dividend of 3.25 cents, also payable Oct. 1, for stockholders of record Sept. 8. The payments will provide shareholders with a quarterly dividend of 18.75 cents a share.

Shares of Sara Lee closed Wednesday at $18.42, which produces a yield of 4.1% when calculated with the new dividend payment. Sara Lee was lately up 2% to $18.63.