Bassett Furniture Industries, Inc. (NASDAQ: BSET) announced that its Board of Directors has declared a special dividend of $1.25 per share of common stock outstanding payable on October 26, 2012, to holders of record on October 12, 2012. The special dividend is an 11% dividend yield based on current stock prices.
For the past two quarters BSET has paid a quarterly dividend to shareholders of $0.05 per share. And, as previously announced, the company’s Q3 dividend will be paid later this week at the $0.05 per share level. The regular dividend yield is 1.73%. Previously this year, on January 3, 2012, shareholders received a special dividend of $0.50 per share.
Bassett Furniture has been on a rebound as its operating profit for the second quarter was $1.6 million versus a $14.3 million loss for the second quarter last year. Company-owned stores had sales of $42.8 million in the second quarter of 2012 as compared to $38.0 million in the second quarter of 2011, an increase of 12.6%. The increase was comprised of a $2.8 million or 7.9% increase in comparable store sales along with a $2.0 million increase in non-comparable store sales.
Bassett Furniture has a 12-month price target of $15.00.