Movado Group (MOV) will reinstate a quarterly dividend in 2021 with a payment of 10 cents per share. Last year the watches company suspended its quarterly dividend because of the coronacrisis. The company last raised its quarterly dividend by 53.8 percent to $0.20 per share in the second quarter of 2018.
The first dividend is payable on February 5, 2021 to shareholders of record on January 21, 2021. An annualized dividend rate of 40 cents per share will yield 2.0% at a stock price of $20.33.
In the company's press release dated January 11, 2021 Efraim Grinberg, Chairman and Chief Executive Officer, stated: “We are pleased to announce a cash dividend. Movado Group is committed to building long-term shareholder value and we believe this dividend declaration advances this objective. Since the onset of the COVID-19 pandemic, our team has intently focused on executing with discipline to strengthen our balance sheet, and as of third quarter end, we had accumulated $163.2 million in cash, reduced inventory and lowered debt. We believe the Board’s reinstatement of a dividend is a testament to our strong cash flow generation amidst this ongoing crisis and reflects their confidence in our strategy and future growth potential.”
The annual dividend payment to shareholders will be estimated at approximately $9 million for Movado. The company also cut its dividiend in both 2009 and 2010, with the dividend being suspended in 2010 and reinstated again in 2011.
Movado Group, Inc. designs, sources, and distributes watches. The company's brands include Coach Watches, Concord, Ebel, ESQ Movado, Scuderia Ferrari Watches, HUGO BOSS Watches, Juicy Couture Watches, Lacoste Watches, Movado and Tommy Hilfiger Watches. Movade sells watches worldwide, and operates its own Movado company stores in the United States. The company had been paying a dividend since 2011 prior to the dividend suspension in 2020. Movado was incorporated in New York in 1967 under the name North American Watch Corporation to acquire Piaget Watch Corporation and Corum Watch Corporation, which had been, respectively, the exclusive importers and distributors of Piaget and Corum watches in the United States since the 1950’s.