Reynolds American Increases Quarterly Dividend by 20 Percent; Announces Two-for-One Stock Split
July 19 2006 - 4:29PM
PR Newswire (US)
WINSTON-SALEM, N.C., July 19 /PRNewswire-FirstCall/ -- The Reynolds
American Inc. (NYSE:RAI) board of directors today declared a 20
percent increase in RAI's quarterly cash dividend and approved a
two-for-one split of the company's common stock. The stock split
will be in the form of a special, 100 percent stock dividend. The
stock dividend will be issued on Aug. 14, 2006, to shareholders of
record on July 31, 2006. Shareholders on the record date will
receive one additional share of RAI common stock for each share
that they own. After the split, there will be approximately 295
million shares outstanding of RAI common stock. The quarterly cash
dividend, on a split-adjusted basis, is $0.75 per common share, or
$3 per share on an annualized basis (compared with a prior
annualized dividend of $2.50 per share). That dividend will be
payable on Oct. 2, 2006, to shareholders of record on Sept. 11,
2006. This is the ninth consecutive quarterly cash dividend that
Reynolds American has declared since it became a publicly traded
company on July 30, 2004. "This increase in our cash dividend
reflects our continuing commitment to increase shareholder value,"
said Dianne M. Neal, RAI's chief financial officer, "and the
two-for-one stock split is consistent with our desire to make
Reynolds American stock more accessible to a broader range of
investors." ABOUT US Reynolds American Inc. (NYSE:RAI) is the
parent company of R.J. Reynolds Tobacco Company, Conwood Company,
L.P., Santa Fe Natural Tobacco Company, Inc., Lane Limited and R.J.
Reynolds Global Products, Inc. R.J. Reynolds Tobacco Company, the
second-largest U.S. tobacco company, manufactures about one of
every three cigarettes sold in the country. The company's brands
include five of the 10 best-selling U.S. brands: Camel, Kool,
Winston, Salem and Doral. Conwood Company, L.P. is the nation's
second-largest manufacturer of smokeless tobacco products. Its
leading brands are Kodiak, Grizzly and Levi Garrett. Santa Fe
Natural Tobacco Company, Inc. manufactures Natural American Spirit
cigarettes and other tobacco products for U.S. and international
markets. Lane Limited manufactures several roll-your-own, pipe
tobacco and little cigar brands, and distributes Dunhill tobacco
products. R.J. Reynolds Global Products, Inc. manufactures, sells
and distributes American-blend cigarettes and other tobacco
products to a variety of customers worldwide. Copies of RAI's news
releases, annual reports, SEC filings and other financial materials
are available at http://www.reynoldsamerican.com/. DATASOURCE:
Reynolds American Inc. CONTACT: Investor Relations,
+1-336-741-5165, or Media, Seth Moskowitz, +1-336-741-7698, both of
Reynolds American Inc. Web site: http://www.rjrt.com/
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