With investors showing little confidence in Time Warner's outlook, they have dropped the stock's price to near the 52-week low of $15.70. The stock did rise 8 cents today to close at $16.21 on the New York Stock exchange.
In what I believe is a move to regain investors' confidence in the company, Time Warner Inc. (TWX) announced today that its Board of Directors has given approval of management's recommendation to increase their dividend by 10 percent, from $0.05 to $0.055 a share concerning its common stock.
The dividend will be payable to shareholders of record at the close of business on August 31, 2006.
Dick Parsons, Chairman and CEO of Time Warner, said: "We're pleased that Time Warner's financial strength has enabled us to increase our dividend, reflecting our confidence in our future prospects and our ongoing commitment to return value directly to shareholders."
Again, this has to be a move to increase confidence and interest in the company. Overall it seems that uncertainty and indecision concerning what they will do with AOL is causing a lot of lingering doubt. They need to make a decision soon on what strategy and road they're going to take there.
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