Cognex Declares Cash Dividend Early
Natick-based Cognex Corp. on Thursday announced an early quarterly cash dividend of 11 cents per share, and said it will pay dividends for fiscal 2013 and 2014 in advance, in order to avoid increased taxation to shareholders.
Robert J. Shillman, chairman of the board and founder of Cognex, said likely increased federal taxation on dividends in 2013 prompted the board of directors to issue the dividend for the fourth quarter of 2012 early, and pay a "very special" cash dividend of $1 in advance of its next eight quarters.
Dividends are available to shareholders of record as of Dec. 14, according to Cognex. Typically, the fourth quarter dividend would not be announced until the first quarter of the company's fiscal 2013 year.
"We will not let tax policy interfere with our company's policy of sharing our success with our shareholders. Therefore, instead of distributing quarterly dividends for the next eight quarters commencing in 2013, we have decided to reward our shareholders by prepaying, while the tax rate is still low, the present value of our estimate of what those dividends would likely be if the tax remained at the 15-percent level," said Shillman.
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