Marine Products Corp (MPX) will cut its quarterly dividend by a third to 8 cents per share in 2020. Last year the boat manufacturer hiked its dividend by 20.0 percent to $0.12 per share quarterly and paid a special dividend. This dividend cut ends 7 consecutive years of dividend hikes by MPX.

The next dividend of 8 cents will be payable June 10, 2020 to common stockholders of record at the close of business on May 11, 2020. A new annual dividend rate of 24 cents yields 2.7% at a stock price of $9.08.

In its press release announcing the dividend cut MPX states that in light of the uncertainty in the economy and its business by the impact of COVID-19, the reduced dividend strengthens the company's capital structure and enhances its ability to maintain a conservative balance sheet.

Marine Products Corporation designs, manufactures and sells recreational fiberglass powerboats in the sportboat, sport fishing and jet boat markets. Its products include Chaparral sterndrive, outboard and jet pleasure boats and Robalo outboard sport fishing boats. The company sells its products to a network of domestic and international dealers. Marine Products was incorporated on August 31, 2000, in connection with a spin-off from RPC, Inc. The company restarted its dividend in 2012.