Tobacco powerhouse Reynolds American, Inc.( RAI
The company's annualized dividend payout will be raised from $3.60 to $3.92 per share, or $1.80 to $1.96 per share on a post-split basis. The new dividend will be paid Jan. 3, 2011 to shareholders of record as of Dec. 10, 2010.
The 2:1 stock split will be completed on Nov. 15, 2010, to shareholders of record as of Nov. 1. Existing RAI shareholders will receive one extra share for each one they own.
Reynolds American stock rose 58 cents, or +1%, in premarket trading Friday.
The Bottom Line
We have been recommending shares of RAI since June 17, 2009, when the stock was trading at $36.33. The company has a 6.54% dividend yield, based on last night's closing stock price of $59.97.
Reynolds American, Inc.( RAI ) is a "Recommended" dividend stock, holding a Dividend.com DARS™ Rating of 3.6 out of 5 stars.
Created by Dividend.com