HAVERTYS (HVT) will cut its quarterly dividend by 25.0 percent to $0.15 per share in 2020. Last year the company raised its quarterly dividend by 11.1 percent to 20 cents per share, marking 10 consecutive years of dividend increases.

The next dividend is payable on June 19, 2020, to stockholders of record at the close of business on June 4, 2020. The new annual dividend rate of 60 cents per share yields 3.7% at a stock price of $16.35.

In a press release dated May 20, 2020 the company explains the dividend cut. Clarence H. Smith, chairman, president and CEO, said, “Before the COVID-19 pandemic became a part of our daily conversation, our first quarter business was ahead of last year. Sales were up 12.8% and comp-store sales were up 11.6% for the first two months of 2020 compared to 2019. March brought increased awareness and a national health emergency was declared on March 13. To protect our team members, customers, and communities, we closed our stores March 19 and halted deliveries March 21. The past few weeks have been challenging and extremely difficult, especially the decisions concerning our workforce made to protect the viability of our company during these unprecedented times. We used our credit facility for the first time since putting it in place in 2008 and completed a sale-leaseback transaction of three distribution facilities to enhance our liquidity position. We have reduced capital spending, cut salaries for senior management, and reduced our quarterly dividend to our common stockholders 25%. Each step we have taken was made to help secure our brand as we face the unknown duration and severity of this pandemic.

Havertys (NYSE: HVT and HVT.A), established in 1885, is a full-service home furnishings retailer with 120 showrooms in 16 states in the Southern and Midwestern regions providing its customers with a wide selection of quality merchandise in middle to upper-middle price ranges. Havertys has paid a cash dividend in each year since 1935.