Sturm Ruger cuts dividend by 21%

Sturm Ruger had raised its dividend 7 straight quarters

US Firearms maker Sturm, Ruger & Company (symbol: RGR) will pay a dividend of $0.78 per share, down 21% from the previous quarterly dividend of $1.00 per share. The company pays a variable dividend based on the net income earned each quarter.

Sturm, Ruger & Company will pay a 78 cent per share quarterly dividend in the fourth quarter of 2021. This next RGR dividend will be paid on November 30, 2021 to shareholders of record on November 15, 2021. This dividend varies every quarter because Sturm Ruger pays a percentage of earnings rather than a fixed amount per share. This dividend is approximately 40% of net income.

If we take the new quarterly dividend of $0.78 per share this translates into an estimated annual dividend rate of $3.12 per share for Sturm Ruger. This yields 3.8% at a stock price of $81.32. Sturm Ruger had hiked its dividend 7 consecutive quarters prior to this dividend cut and also paid a $5.00 per share special dividend in August 2020.

Sturm, Ruger & Company, Inc. is a manufacturer of firearms to domestic customers in the United States. Sturm Ruger operates through two segments: firearms and castings. The firearms segment manufactures and sells rifles, pistols, and revolvers principally to a number of federally licensed, independent wholesale distributors primarily located in the United States. The castings segment manufactures and sells steel investment castings and metal injection molding parts. Sturm Ruger primarily offers products in three industry product categories: rifles, pistols, and revolvers. The company pays a dividend based on earnings with quarterly dividend amounts varying.