This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Dividend Talk Sparks MGM

Metro-Goldwyn-Mayer (MGM - Get Report) shot up on the Instinet premarket session after the company told investors it might pay them a special one-time dividend.

Shares of the storied movie studio were recently trading for $18.18, up $1.98, or 12%, from their Monday close. Monday night, the company issued a statement saying it was exploring several avenues for returning value to shareholders, including a special dividend that media reports have put between $6 and $9.

"In addition to the programs we have considered in the past, which have included our recent tender offer and our open market stock repurchase program, we also are exploring other alternatives, such as whether to recommend to our board a significant one-time dividend distribution to all our shareholders," the company said.

MGM, which is three-quarters owned by Las Vegas billionaire Kirk Kerkorian, has been grappling with a yearlong identity crisis, variously considering acquisitions including the Time Warner Entertainment assets, a going-private transaction, and a handful of mergers, according to reports. To date, nothing formal has been consummated.

The company has about 235 million shares outstanding, which would mean a $6 dividend would cost $1.4 billion.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
MGM $16.55 -1.90%
AAPL $95.01 0.00%
FB $99.51 -0.24%
GOOG $677.65 -0.75%
TSLA $147.00 -0.67%


Chart of I:DJI
DOW 16,014.38 -12.67 -0.08%
S&P 500 1,852.21 -1.23 -0.07%
NASDAQ 4,268.7630 -14.99 -0.35%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs