IDT Corporation Announces Payment of Special Dividend of $0.60, Suspension of Quarterly Dividends for FY 2013
The Board of Directors of IDT Corporation (NYSE: IDT) today decided to pay a special dividend of $0.60 per share to holders of its Class A and Class B common stock. IDT has also suspended payment of its regular $0.15 quarterly dividends for its 2013 fiscal year, the twelve months ending July 31, 2013.
The special dividend will be paid on or about November 13, 2012 to stockholders of record of as of the close of business on November 5, 2012. The ex-dividend date will be November 1, 2012. For tax purposes, the $0.60 per share payment will be treated as a return of capital and not as a dividend. Payments classified as returns of capital generally reduce the basis in the shares on which the payment is made, unless the basis is lower than the amount of the payment.
“With the uncertainty surrounding the federal tax treatment of dividends, including the scheduled December 31st expiration of the 15% federal tax rate on dividend income, our stockholders are best served by paying this dividend now. We have the flexibility to pay the special dividend while maintaining our strong balance sheet and continuing to invest in the growth of our telecom and other businesses. We do not expect to pay a regular dividend for the four quarters of fiscal year 2013, and we will monitor our operational results, cash needs and anticipated performance to determine the best way to deliver value to our stockholders going forward,” said Howard Jonas, Chairman and CEO of IDT Corporation.
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