Aaron’s (AAN) to change stock dividend policy by the end of the year – Idaho Reporter

NYSE

Aaron’s (AAN) to change stock dividend policy by the end of the year

Earlier today Aaron’s Inc. (NYSE:AAN) reported Q2 profit of $68.4 million which is a results that surpassed Wall Street expectations.

But besides this report Aaron’s also reported that it will spin-off into two independent, publicly-traded companies: Progressive Leasing and the Aaron’s Business.

“I’m proud that we have built two strong businesses, both of which are well-positioned for long-term success as independent companies,” said John Robinson, President and CEO of Aaron’s, Inc. “The Board and management team believe that separating Progressive and Aaron’s will enhance long-term shareholder value and is the next logical step in the evolution of our organization.”

What this means for AAN shareholders?

When a company separates into 2 different companies there must be some change coming, especially if the company that is changing paying quarterly dividends.

The transaction is expected to be completed by the end of 2020 but the Company may”at any time and for any reason” stop this transaction or change the terms. But under the current terms “the Company expects to continue to pay its regular quarterly cash dividend. Each business will set its own dividend policy following the separation“. This means that you might end up with 2 separate cash dividends once you get new shares from these 2 companies.

AAN stock price is up more than 12% in pre-market on great quarterly results and it is expected that the share price will go above $50 today.

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