MTS Systems Corporation (MTSC) will suspend its quarterly dividend in 2020 because of the COVID-19 pandemic. The company last raised its quarterly dividend by 20.0 percent to $0.30 per share in 2012 and had been paying a dividend every year since 2003.

In today's press release the company provides an update on its business and the actions taken to address the COVID-19 pandemic, including the suspension of the company's dividend to further enhance liquidity. The company states: "We are suspending our quarterly dividend of $0.30 per share, equating to approximately $23 million in annualized cash payments, which will enable us to prioritize near-term financial flexibility to manage the needs of the business and on-going debt obligations, while supporting essential investments in the business. Our Board of Directors remains committed to returning value to shareholders in the most efficient and effective way possible and will consider future dividends as the economic landscape and visibility improves."

MTS Systems Corporation is a global supplier of high-performance test, simulation and measurement systems and sensors that was incorporated under Minnesota law in 1966. The company's operations are organized and managed in two reportable segments, Test & Simulation and Sensors. The Test & Simulation segment provides testing and simulation solutions including hardware, software and services that are used by customers in product development to characterize a product’s mechanical properties along with simulation systems for human response features. The Sensors segment provides sensing technologies and solutions used worldwide by design engineers and maintenance professionals. MTS Systems Corporation had been paying a dividend since 2003 prior to the dividend suspension announced in April 2020.