SPRINGFIELD, N.J. — The board of directors of Village Super Markets here said Friday it would pay shareholders a special dividend so as to benefit from a low tax rate. The payments of $1.25 per share for Class A stockholders and $.8125 per Class B shares will be payable on Dec. 28.
Village said its board intends to pay quarterly dividends in 2011 in a range of 6 cents to 12 cents per Class A share, and 39 cents to 78 cents per Class B share.
“The board will reconsider dividend policy and other methods of providing returns to shareholders in 2012 based on a variety of factors, including tax rates on dividends and capital gains in effect at that time,” James Sumas, chairman and chief executive officer, said in a statement. “The board is pleased to demonstrate to our investors our ongoing commitment to enhancing shareholder value. After paying the estimated $14 million of special dividends from cash on hand, the company's balance sheet remains strong with ample resources to manage our business and sufficient flexibility for strategic initiatives."
Village operates 26 ShopRite supermarkets in New Jersey and Pennsylvania.
