US: Brown-Forman still keen to buy despite US$850m dividend pay-out
Brown-Forman's extra dividend payment will be made just after Christmas
Brown-Forman has lined up a special dividend payment to the tune of around US$850m, but maintains it still has enough capital to make “strategic acquisitions”.
The Kentucky-based company, which owns the Jack Daniel's and Southern Comfort spirits brands, said earlier today (27 November) that it will pay US$4 per share on its class A and class B common stock. Payment will be made on 27 December to shareholders of record on 12 December.
The pay-out is in addition to the quarterly dividend of US$0.255 per share that was confirmed earlier this month.
“The company chose to make this payment in calendar 2012 because of the uncertainty surrounding future dividend tax rates,” said company chief executive Paul Varga.
“Even after this special dividend, we retain ample capital capacity to make long-term investments in our business, such as the current expansion of the Jack Daniel distillery and strategic acquisitions.”
Last month, Nomura suggested that Brown-Forman may be poised to break open a US$3bn warchest to fund a whisk(e)y or vodka acquisition.
In this month's management briefing, Ben Cooper looks at the alcoholic drinks industry's attempts to reduce alcohol harm and promote responsible consumption. Part one of this four-part briefing consid...
Earlier this week, brand valuation consultancy Intangible Business released the results of its latest survey of the world's spirits brands. Here's a look at the top ten, along with the methodology use...
The ten fastest-growing spirits brands in the US ranked by percentage increase in volume in 2012 versus 2011: ...
- Focus - Edrington's FY Performance by Brand
- Where Beer is Brewed Can Leave a Bad Taste
- Analysis - Storm clouds lift over Diageo Towers
- Analysis - Cider's Campaign Gains
- Pernod relies on Indian whiskey to crack Africa
- Former Bacardi exec takes De Kuyper CEO role
- Diageo lining up Gleneagles sale - report
- Edrington posts FY profits drop
- Pernod Ricard appoints Absolut Vodka VP
- Beam Suntory to re-package Courvoisier Cognac
- Global liqueurs insights - market forecasts, product innovation and consumer trends research
- The IWSR Company Profile 2014 – Remy Cointreau
- Diageo plc (DGE) - Financial and Strategic SWOT Analysis Review
- Edrington Group in Spirits (World)
- Global Tequila insights - market forecasts, product innovation and consumer trends research