NACCO Industries (NC) will cut its quarterly dividend from $0.2725 to $0.165 per share in the fourth quarter of 2016. Earlier this year NACCO had raised its dividend by 1.9%. Today’s dividend cut follows the spin-off of Hamilton Beach Brands Holding Company (HBB) on September 29, 2017.

HBB will start paying a quarterly dividend of $0.085 per share. This means the combined dividend of NC and HBB are $0.25 for the fourth quarter of 2017, compared to $0.2725 for the ‘old’ NACCO Industries prior to the spin-off. Because of this NACCO Industries will lose its dividend track record with 31 consecutive years of dividend increases.

The lower dividend will be paid by NACCO on December 15, 2017 to shareholders of record on December 1, 2017. The new dividend yield for NC is 1.5%.

NACCO and its predecessor public company, The North American Coal Corporation, have consistently paid dividends to public shareholders since 1956. 

NACCO Industries, Inc. is an operating holding company for The North American Coal Corporation, which mines coal primarily for use in power generation and provides value-added services for natural resource companies. Coal is surface mined from NACoal's mines in North Dakota, Texas, Mississippi, Louisiana and the Navajo Nation in New Mexico.