Moelis Posts Earnings Gains, Cuts Dividend
Wall Street investment bank Moelis (NYSE: MC) cut its dividend in half for the second quarter due to uncertainty related to the coronavirus pandemic.
In its first-quarter earnings report, Moelis reduced its dividend from $0.51 to $0.25, effective May 4. Officials said it's prudent to retain capital to enhance financial flexibility in this uncertain environment. The company had been paying out a high dividend at a yield rate of nearly 7%. Now the yield rate is about half that. It is the first time the company has lowered its quarterly dividend dating back to 2014.
"In the current unprecedented environment, the emphasis on balance sheets and business models are now at the forefront of conversations across all companies. However, for Moelis & Company, building and maintaining a fortress balance sheet has been at the core of our business since inception," said Ken Moelis, the company's founder, chairman, and CEO.
Source Fool.com
