Jabil Circuit Starts Dividend

The copmany will pay 7 cents a share.
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Jabil Circuit

(JBL) - Get Report

will issue its first-ever quarterly dividend as management says it is confident of long-term cashflow and its "working capital discipline."

The company said Friday it will pay a dividend of 7 cents a share on June 1 to shareholders of record on May 15.

Jabil said it plans to pay dividends each quarter, subject to approval by the board after its review of the company's quarterly performance.

Shares of the electronics manufacturing services company were off 24 cents to $40.26 on Friday.

Earlier this week, Jabil disclosed that it was contacted by the

Securities and Exchange Commission

in response to media reports questioning its stock options practices. Jabil said an internal investigation found no evidence of backdating of stock options. The company said it is cooperating with the SEC's informal inquiry.