Brown-Formans three-for-two split will be voted on next month

Brown-Forman's three-for-two split will be voted on next month

Brown-Forman is set to split its stock this summer.

The US-based spirits company said earlier today (14 June) that its board has proposed a three-for-two split of its Class A and Class B common stock. The move would be paid in the form of a stock dividend.

The split requires stockholder approval, which will be requested at the annual meeting on 26 July, Brown-Forman said. If approved, the company would distribute one additional share of stock for every two shares on or about 3 August. The new shares will be distributed on or about 10 August.

“The recommended three-for-two stock split reflects the company’s continued confidence in our ability to generate long-term growth in both earnings and cash flow, and would mark the sixth split in the last 35 years,” said CEO Paul Varga.

The move will not affect the quarterly cash dividend of $0.35 per share payable on 2 July, which was confirmed last month.

The Brown family controls about 67% of the voting shares - Class A shares - of stock. Both Class A and Class B shares are traded on the NY Stock Exchange, with Class B shares more heavily traded than Class A shares.