Bassett Furniture Industries (BSET) will cut its quarterly dividend by 36 percent to $0.08 per share. The company decided to defer its prior quarterly dividend to be paid on May 29 because of the COVID-19 pandemic. Now a dividend cut from 12.5 cents to 8 cents per share is announced.

The Board also reinstated the dividend of $0.125 per share of outstanding common stock that was previously deferred on March 31, 2020 due to economic and financial disruptions caused by the pandemic. Both dividends are payable on August 28, 2020 to shareholders of record at the close of business on August 14, 2020.

The next dividend of 12.5 cents is payable on November 27, 2020 to shareholders of record at the close of business on November 13, 2020. The 50 cent per share annual dividend yields 3.2% at a stock price of $15.60.

“Our Board of Directors met yesterday with Management to review the effects of the COVID-19 pandemic on our business and our plans for the future,” said Rob Spilman, Chairman and CEO. “I am pleased that the Board reinstated the quarterly dividend albeit at a 36% reduction while also honoring our commitment to pay the dividend declared in March 2020. In keeping with our long-standing philosophy of returning capital to shareholders in the form of a dividend, we continue to monitor the pace of business as it relates to future dividend levels.”

Bassett Furniture Industries is a retailer, manufacturer and marketer of branded home furnishings. The company's products are sold primarily through a network of company-owned and licensee-owned branded stores under the Bassett Home Furnishings name, with additional distribution through other wholesale channels including multi-line furniture stores, many of which feature Bassett galleries or design centers. The company was founded in 1902 and incorporated under the laws of Virginia in 1930. Bassett Furniture Industries initiated a dividend in 2011 and decided to defer its dividend in Q2 of 2020 because of the COVID-19 pandemic.