In its consistent effort to share more profit with the shareholders, the board of directors of Viad Corp (VVI - Free Report) has approved a special dividend of $1.50 per share. This special dividend will be paid on Feb 14, 2014 to shareholders of the record as of Feb 7.
The latest special dividend comes close on the heels of another special dividend of $2.50 per share paid on Nov 14, 2013.
Based on its number of shares outstanding, Viad will have to dish out $30.5 million for the latest payout. Viad, along with its Marketing & Events Group, operates through Travel & Recreation Group that is composed of Brewster Travel Canada, Glacier Park Inc. and Alaska Denali Travel.
The Glacier Park, Inc. held the contract of operating concessions in Glacier National park which expired on Dec 31, 2013. Viad received a cash entitlement of around $30 million following the expiration that is expected to primarily cushion the payout. Moreover, the company has a strong cash balance too as an additional source of support.
The company has built a solid capital base through strong results at its Marketing & Events Group. Also, Viad’s Travel & Recreation Group has been posting solid results in the last few quarters that is earning more revenues for the company.
Besides paying special dividends, the company has also been paying regular quarterly dividends for the last few years. In 2013, Viad has distributed more than $6 million among its stockholders in terms of regular quarterly dividend.
Viad’s present quarterly dividend of 10 cents a share currently yields at 1.46%, substantially better than the industry yield of 0.96%. Previously, Viad had increased its quarterly dividend substantially in Oct 2012.
Viad presently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the Business Services industry that might be worth considering include Cardtronics Inc. (CATM - Free Report) , PFSweb Inc. (PFSW - Free Report) and Rentrak Corp. . All these stocks carry a Zacks Rank #1 (Strong Buy).