6 big dividends: Vornado's surprise dividend suspension | Pro Recap

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By Davit Kirakosyan

Investing.com -- Here is your Pro Recap of the biggest fresh dividend hikes you may have missed last week: Vornado's payout suspension, plus massive dividend hikes at Summit Hotel, Cenovus, Rand Capital, Ethan Allen, and FNCB Bancorp.

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Vornado's eyebrow-raising dividend suspension

Vornado Realty Trust (NYSE:VNO) said after the close Wednesday that it will postpone its common-share dividends - which had offered a payout ratio of 10% - until the end of 2023.

The company also said it would repurchase up to $200 million of its outstanding common shares.

Following the surprise announcement, Piper Sandler cut Vornado's rating to Underweight from Neutral and trimmed its price target to $11 from $16, noting its view that the suspension is tied to the company's declining earnings and balance sheet concerns.

Piper also said the suspension of the entire dividend suggests deeper issues within the company, adding that a partial reduction would have been "preferable." And on the buyback announcement, it noted:

If cash preservation is so critical, we wonder why implementing a $200m stock buyback program is a good use.

Shares ended last week down 1.8%, having partially recovered from their big downward spike Thursday. The company is set to report its Q1 earnings today after market close.

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Summit Hotel Properties dividend catapults by 50%

Summit Hotel Properties (NYSE:INN) shares gained more than 3% on Friday after the company hiked its dividend by 50% to $0.06 per share, or $0.24 annualized, for an annual yield of 3.9%.

The dividend will be payable on May 31, 2023, to stockholders of record on May 17, 2023, with an ex-dividend date of May 16, 2023.

The company is set to report its Q1/23 earnings on Wednesday after the market close.

Cenovus Energy sharply raises dividend, beats on Q1 earnings

Cenovus Energy (TSX:CVE) hiked its dividend by 33.3% to $0.14 per share, or $0.56 annualized, for an annual yield of 3.3%. The dividend will be payable on June 30, 2023, to stockholders of record on June 15, 2023, with an ex-dividend date of June 14, 2023.

The company reported its Q1 results last week, with both EPS and revenues coming in above the consensus estimates.

3 more sizable dividend hikes

Rand Capital (NASDAQ:RAND) hiked its dividend by 25% to $0.25 per share, or $1 annualized, for an annual yield of 7.9%. The dividend will be payable on June 14, 2023, to stockholders of record on May 31, 2023, with an ex-dividend date of May 30, 2023.

Ethan Allen Interiors (NYSE:ETD) hiked its dividend by 12.5% to $0.36 per share, or $1.44 annualized, for an annual yield of 5.4%. The dividend will be payable on May 25, 2023, to stockholders of record on May 9, 2023, with an ex-dividend date of May 8, 2023.

FNCB Bancorp (NASDAQ:FNCB) hiked its dividend by 20% to $0.090 per share, or $0.36 annualized, for an annual yield of 5.9%. The dividend will be payable on June 15, 2023, to stockholders of record on June 1, 2023, with an ex-dividend date of May 31, 2023.

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