In 2006, Sara Lee, now Hilshire Farm(HSH), loaded up HanesBrands(HBI) with lots of debt and spun it off. Seven years later, after weathering a financial crisis, steadily paying down debt and improving profitability, the company has announced it will pay a quarterly dividend of $.20, beginning in June. The dividend will be paid on June 3, to shareholders as of May 20. “Initiating a quarterly dividend is a substantial company milestone made possible by strong strategic execution, successful debt reduction and cash-flow generation, and margin-improvement prospects,” Hanes Chairman and Chief Executive Officer Richard A. Noll said. “With our successful track record and long-term outlook, the Board decided it was time to institute a regular quarterly dividend.” The company also pre-announced excellent earnings for last quarter and reaffirmed guidance for the year. We have long been bullish on HanesBrands and are glad to see this important step in the company’s growth. Disclosure: The author owns shares in HSH and HBI Related articles Hanesbrands to Pay its First Dividend (fool.com)
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