New York Times Boosts Dividend

The publisher increases its payout 31% to 23 cents.
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New York Times

(NYT) - Get Report

threw a bone to shareholders Thursday and announced a 31% increase in its quarterly dividend.

The publisher said it will pay a dividend of 23 cents a share to both its Class A and Class B shareholders.

"This dividend increase, which is another important step in creating value for our shareholders, puts our dividend yield and payout ratio significantly above that of the

S&P 500

and others in our industry," said Chairman Arthur Sulzberger Jr. "The strong cash flow of the company and our current financial position, with the upcoming sale of our broadcast unit and radio station, give us the ability to return more capital to shareholders."

The dividend boost comes as New York Times has been struggling with big profit declines from its New England media division and has been under fire from a Morgan Stanley investment fund for refusing to evaluate changes to its dual-share structure. The Sulzberger family controls the company through their Class B shares.