Tyson declares dividend and sets new high

by The City Wire staff (info@thecitywire.com) 5 views 

Tyson Foods’ board of directors has declared a cash dividend of 5 cents for each A share and 4 cents for the restricted B class shares.

The dividend is payable on June 14 to shareholders of record at the close of business on May 31, the company said Tuesday (Feb. 5).

Shareholders continue to benefit from a rising stock valuation reaching another 52-week high mark. Shares were trading at $23.13, up 1.31% in the morning session on Tuesday.

Also today, Fitch Ratings upgraded their outlook for Tyson Foods to a positive status with respect to the company’s $2.4 billion in debt.

The positive outlook is due to Fitch's expectation of additional debt reduction and improvement in margins during fiscal 2014.

Fitch said there is a potential for Tyson Foods 2014 ratings to be upgraded one notch to BBB+  if the following conditions are met:

Paying off $458 million 3.25% convertible notes when they become due on Oct. 15,
Maintaining debt near the $2 billion level,
Meeting Fitch's forecasts of operating earnings and cash flow improvement in 2014.