WWE Hits Rock Bottom, Shares Plunging On Dividend Cut (WWE)

Shares of World Wrestling Entertainment Inc. WWE are plunging in pre-market trading, down nearly 10% after the company cut its dividend, amid slumping revenues. The company will now pay a quarterly dividend of 12 cents per share, down from 36 cents per share. The new yield will be approximately 4.2%. “Our Board of Directors has determined that an adjustment to the current dividend is both prudent and appropriate,” stated Vince McMahon, Chairman and Chief Executive Officer. “We believe this change strikes the right balance between returning capital to shareholders and investing in our future. We are confident that WWE is ideally positioned to create long term value for our shareholders.” “The Company's revised quarterly dividend was set based on targeted ranges for payout ratios and liquidity levels,” stated George Barrios, Chief Financial Officer. “Aligning payouts with our current level of earnings and cash flow will significantly enhance our financial flexibility, support our current growth initiatives, and enable us to take advantage of important strategic opportunities in a quickly changing media landscape, including executing on our ‘New WWE' initiative.” The new quarterly dividend rate will become effective with our June 2011 dividend payment. The record date for the dividend will be June 15, 2011, with a payment date of June 27, 2011. At last check, shares were off $1.06 in pre-market trading to $10.37, a loss of 9.27%.