Time Warner to Pay Stock Dividend

May 20, 2005  •  Post A Comment

Time Warner announced Friday that it will pay shareholders a 5-cent dividend each quarter starting in September.

The move comes as the media giant continues to stage a comeback after nearly succumbing to problems related to its massive debt load and to struggles at its America Online unit. Time Warner last paid its investors a quarterly dividend of 4.5 cents in December 2000, around the time the company closed its merger with AOL.

According to analyst estimates, the dividend the company will begin paying in the third quarter amounts to around $940 million a year, or more than one-fourth the company’s estimated annual cash flow of $3.5 billion.