Signet Jewelers (SIG) will suspend its quarterly dividend because of the COVID-19 pandemic. The company last raised its quarterly dividend by 19.4 percent to $0.37 per share in the first quarter of 2018. The dividend suspension follows a suspension in 2009 and 2010 during the financial crisis.

The company states that Signet’s Board of Directors has elected to temporarily suspend the dividend program on the common shares and has elected to pay the May quarterly dividend on its preference shares in kind.

In the company's press release Signet reported its fourth quarter and fiscal 2020 results. Virginia C. Drosos, Chief Executive Officer, explained the dividend suspension: "What’s paramount now is that we are moving quickly and aggressively to strengthen Signet’s financial flexibility by reducing capital expenditures, driving transformational cost savings, and accelerating optimization of our real estate footprint. In addition, we have accessed $900 million from our revolving credit facility, suspended our common dividend, and elected to pay the May quarterly dividend on the preference shares in kind rather than in cash.

Signet Jewelers Limited is a retailer of jewelry, watches and associated services in the United States, Canada and the United Kingdom. The Company operates retail jewelry stores in various real estate formats, including mall-based, free-standing, strip center and outlet store locations. The company operates stores primarily under the name brands of Kay Jewelers, Zales, Jared, H.Samuel, Ernest Jones, Peoples, Piercing Pagoda, and JamesAllen.com. Prior to the 2020 dividend suspension Signet Jewelers had been paying a dividend since 2011. The company also suspended its dividend in 2009.