Kansas City Southern’s (KCS) (NYSE:KSU) Board of Directors on November 15, 2012 declared a regular cash dividend of $0.25 per share on the outstanding KCS 4% non-cumulative preferred stock. The dividend is payable on December 27, 2012 to preferred stockholders of record at the close of business on December 10, 2012.
The Board of Directors also declared a regular cash dividend of $0.195 per share on the outstanding KCS common stock. This dividend is payable on December 28, 2012, to common stockholders of record at the close of business on December 10, 2012.
The Board considered uncertainty about United States income tax rates beyond 2012 in determining the payable date of this fourth quarter 2012 dividend from the normal January 2013 payable date. The Board expects to continue issuing dividend payments on the Company's normal dividend payment schedule in 2013, commencing with the first quarter 2013 dividend payments, which would be payable in April 2013. In such case, the holders of the Company's outstanding 4% Preferred Stock and outstanding common stock would receive three cash dividend payments in calendar year 2013 as a result of the advancement of this fourth quarter 2012 dividend payment.
Headquartered in Kansas City, Mo., Kansas City Southern is a transportation holding company that has railroad investments in the U.S., Mexico and Panama. Its primary U.S. holding is The Kansas City Southern Railway Company, serving the central and south central U.S. Its international holdings include Kansas City Southern de Mexico, S.A. de C.V., serving northeastern and central Mexico and the port cities of Lázaro Cárdenas, Tampico and Veracruz, and a 50 percent interest in Panama Canal Railway Company, providing ocean-to-ocean freight and passenger service along the Panama Canal. Kansas City Southern's North American rail holdings and strategic alliances are primary components of a NAFTA Railway system, linking the commercial and industrial centers of the U.S., Mexico and Canada.