Bassett Furniture Industries (BSET) will hike its quarterly dividend by 12 percent to $0.14 per share in 2021. The company cut its dividend from 12.5 cents to 8 cents per share in 2020 because of COVID-19.

The next dividend of 12.5 cents is payable on August 27, 2021 to shareholders of record at the close of business on August 13, 2021. The 56 cent per share annual dividend yields 2.2% at a stock price of $25.

“We are pleased that our Board of Directors feels that a 12% percent increase to our quarterly dividend and a $16 million increase to our share repurchase authorization reflect the strength of our recent operational results and our solid prospects for the future,” commented Rob Spilman, Chairman and CEO. “With the reopening of the country fully underway and with consumer spending moving in favor of travel, dining, and other discretionary pursuits, we do expect our incoming business to ultimately feel the effects of this shift. Nevertheless, the underlying strength of the economy and of our sales programs continued to produce vigorous sales again in June. That aside, we are committed to decrease our current order backlogs and to improve service levels as soon as possible.”

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.