Some investors were surely hoping for a more generous shareholder payout.
Investors weren’t exactly neutral on Switzerland-based tech equipment specialist Logitech International (LOGI -2.67%) on Wednesday. Looking at the voting results of the company’s annual general meeting (AGM), a clutch of them sold out of the stock, putting it at a 2.7% loss on the day. The decline eclipsed that of the S&P 500 index, which decreased by 0.2% on the day.
Downbeat about the dividend declaration
Wednesday morning, Logitech published the results of the various votes at the AGM. It reported, no doubt happily, that all measures passed.
As is its habit, the company proposed an annual dividend for those voters and other shareholders. Management’s 1.16 Swiss francs ($1.19) per share was floated, and easily passed.
But that likely disappointed the company’s many American shareholders. While the payout is 0.10 francs ($0.12) higher than its predecessor, in U.S. terms it’s basically even, at $1.19 per share.
This is due mostly to the rise of the franc against the dollar; since the beginning of June, it has strengthened by 7%. That isn’t an isolated phenomenon; the euro has also increased against the greenback.
On a somewhat more hopeful note, Logitech said that it intended to keep paying dividends and repurchasing shares to support the value of its stock. It did not provide details for either activity.
The payout is coming soon
Logitech has not fixed exact record and payment dates for the new dividend. It said it expects these to be Sept. 24 and Sept. 25, respectively. At the most recent closing share price, the payout would yield just under 1.4%.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Logitech International. The Motley Fool has a disclosure policy.