Correction: Story corrects that New York Times paid a dividend for 39 years beginning in 1969. The announced plan is not the company's first dividend payment.
NEW YORK - (TheStreet) -- New York Times (NYT), owner of the newspaper that bears its name, said Thursday it will pay a four-cent quarterly dividend, the first shareholder payout since the company suspended payments for the first quarter of 2009. New York Times had paid a quarterly dividend for 39 years beginning in 1969.
New York Times said shareholders will begin to receive the dividend on Oct. 24 to stockholders of record as of the close of trading on Oct. 9.
"We are pleased to announce the initiation of this quarterly dividend, which will allow us to return capital to our shareholders while maintaining the financial flexibility necessary to continue to invest in the company's transformation and various growth initiatives," Chairman Arthur Sulzberger, Jr. said in a statement.
New York Times shares rose 0.9% to $11.54 on Thursday to extend their 2013 rise to 35%. Shares have gained 66% during the past two years. The New York-based media company is projected to post sales of $445 million, a decrease of 1% in 2013, according to average analyst projections compiled by Bloomberg.
Elsewhere, The Wall Street Journal is losing two of its superstars.
Tech guru Walt Mossberg, who all but created the position of personal-technology journalist, and his cohort Kara Swisher, are leaving the Journal and taking their highly trafficked web site AllThingsD with them. News Corp. (NWS), which made the separation official today in a statement, acquired Dow Jones and its flagship newspaper The Journal in 2006.
News Corp and AllThingsD will not renew their contract when it expires at the end of the year, Dow Jones Editor Gerard Baker said in the statement. Mossberg will leave the newspaper at that time.
Written by Leon Lazaroff.