Systemax Inc. (SYX) has announced a second special dividend in 2020. The company will pay $2.00 per share as a special dividend. Earlier this year the regular dividend was raised by 16.7 percent to 14 cents per share. Also the company announced a $1.00 per share special dividend. This follows a 9.1 percent dividend hike by the direct marketing company announced in 2019, when a $6.00 per share special dividend was paid.
The $2.00 per share special dividend will be payable on December 28, 2020 to shareholders of record as of the close of business on December 18, 2020. A portion of this distribution may be considered a return of capital for tax purposes. Additional information regarding return of capital distributions are expected to be made available at Systemax's investor relations website in early 2021.
Richard Leeds, Executive Chairman, said, "With this special dividend, our fourth in four years, we will have paid to shareholders almost $500 million in dividends since 2018. Our strong balance sheet, continued cash generation, and business momentum provide significant flexibility to execute our strategic plan, invest in our future growth, and to fund our regular quarterly dividend."
The regular annual dividend rate of 56 cents per share yields 1.6% at a stock price of $36.50 for Systemax.
Systemax Inc. is a provider of industrial products in North America going to market through a system of branded e-Commerce websites and relationship marketers. The company's primary brand is Global Industrial. Other trademarks are: Global, GlobalIndustrial.com, Nexel Relius, Paramount and Interion. Its Consumer Electronics products include television and video; audio; cameras and surveillance; Global Positioning System (GPS); cell phones; video games, and home and electronics accessories. Systemax became a public company in 1995 and has paid a regular quarterly dividend since 2017.