Ouch! Lamar Advertising Cuts Dividends by 50%
$0.50/share quarterly dividend —50% decrease from prior dividend of $1.00.
BATON ROUGE, La., May 28, 2020 (GLOBE NEWSWIRE) — Lamar Advertising Company (LAMR), a leading owner and operator of outdoor advertising and logo sign displays, announces that its board of directors has declared a quarterly dividend of $0.50 per share payable on June 30, 2020, to stockholders of record of Lamar’s Class A common stock and Class B common stock on June 22, 2020.
“While customer activity has picked up, as we noted when we reported first-quarter results, the trajectory of our business through the remainder of 2020 remains difficult to predict,” Lamar chief executive Sean Reilly said. “Given that uncertainty, the board concluded that adjusting the dividend for the second quarter is the prudent course of action. We plan to evaluate our dividend plans on a quarterly basis, giving consideration to our liquidity, our leverage and the operating environment that we foresee. We fully intend to honor our obligation as a REIT to pay out at least 90% of our full-year taxable income.”
Lamar previously paid a dividend of $1.00 per share on March 31, 2020.
About Lamar Advertising Company
Founded in 1902, Lamar Advertising Company is one of the largest outdoor advertising companies in North America, with over 390,000 displays across the United States and Canada. Lamar is the largest network of digital billboards in the United States with over 3,600 displays.
OOH Today’s view: The future is as shaky and unknown as it ever has been. Despite all the rhetoric about going through past recessions and chest puffing on future sales, the reality is, this Great Pause is too difficult to forecast. Best to cut back on spend and conserve cash like we all are, until the future becomes more clear.