For the first time in 30 years, Moog Inc. will start paying dividends to its shareholders.
The Elma motion control equipment maker said it will start paying a dividend of 25 cents per quarter on June 1 in a move that CEO John Scannell said reflects Moog's strong cash flow, which will allow the company to make the payments to shareholders while still having enough cash to invest in its business and make acquisitions.
The restoration of the dividend "reflects the confidence we have in the strength of our business and our commitment to disciplined capital deployment," Scannell said.
Moog stopped paying a dividend to its common stock shareholders in 1988 as the company went through a painful restructuring. Restoring the dividend will cost the company about $9 million per quarter.