Will you pay dividends this year?
On February 1, 2016 the company announced that we will pay a dividend of $0.05 in the 1st quarter of 2016. On May 4, 2016 the company announced that we will pay a dividend of $0.05 in the 2nd quarter of 2016.
On August 4, 2016 the company announced that its board of directors has decided to eliminate its quarterly cash dividend.
The decision to eliminate the dividend is based upon a number of factors, all relating to the strong prospects for long-term growth of PDL, including:
- A change in strategic focus to include equity investments and specialty pharmaceutical product acquisitions which have the potential to generate revenues quickly;
- More sizable royalty deals that could provide significantly greater long-term benefits to the company and its shareholders;
- The expiration of the Queen et al. patents and reduced revenue associated with these assets;
- Financing considerations, which include potentially more favorable financing terms related to debt financing should PDL pursue additional financing options.