Virginia National Bankshares is increasing shareholder distributions through an 8% stock dividend and a higher quarterly cash dividend. The stock dividend will be distributed first, so the cash dividend will be paid on shareholders’ increased shareholdings.
- Stock dividend: Shareholders of record on November 20 will receive 0.08 additional shares for each share they own. The shares are scheduled to be distributed November 30; fractional shares will be paid in cash.
- Share count: The distribution is expected to add about 430,000 shares, taking shares outstanding from approximately 5.4 million to 5.9 million.
- Cash dividend: The quarterly dividend rises by 2 cents, from 36 cents to 38 cents per share. It will be paid December 15 to shareholders of record on December 1.
- Effect of the sequence: Because the stock dividend comes first, the 38-cent cash dividend will be paid on the increased number of shares. A shareholder who held 100 shares on the stock-dividend record date, for example, would receive eight additional shares and, if still eligible on the cash-dividend record date, receive the cash dividend on 108 shares.
- Stated yield: The company put the annualized cash-dividend yield at approximately 2.85%, based on its November 9 closing share price.
The stock dividend increases the number of shares outstanding, while the higher cash dividend raises the per-share quarterly payment. Together, the actions increase the company’s distributions to shareholders; the stock dividend itself does not provide cash apart from payments for fractional shares.