GENEVA, SWITZERLAND: The Supervisory Board of STMicroelectronics (NYSE:STM) approved the management proposal to submit to the forthcoming 2010 Annual General Meeting of Shareholders the distribution of an annual cash dividend of $0.28 per outstanding share of the Company’s common stock, payable in four equal quarterly installments.
The proposed dividend equals a 2.7 percent yield on the Company’s share price at closing on Friday, April 16, on the NYSE.
The proposal will be submitted for shareholder approval at the Company’s Annual General Meeting, which will be held in Amsterdam on May 25, 2010. Upon approval, the dividends will be paid in four equal quarterly installments in June, August and December 2010, and February 2011 to shareholders of record in the month of each quarterly payment. The first payment date will be on June 3 for the European stock exchanges and on June 8 for the NYSE.
The Company’s annual cash dividend of US$0.28 per share, as proposed, is significantly higher than the annual dividend of $0.12 per share declared last year.
“Last year we were obliged to significantly reduce our dividend as a responsible and temporary measure in reaction to the severe recession,” said Carlo Bozotti, President and CEO of STMicroelectronics.
“Despite the recession our financial position has substantially improved. Now, a strong financial foundation, confidence in the Company’s ability to generate solid free cash flow and the expected proceeds of our product portfolio reshaping allow ST to increase the dividend and to reward our shareholders for their investment and trust in the Company.”