Today, CHS Inc., a key player in the wholesale farm product raw materials industry, announced the declaration of regular quarterly dividends on its preferred stock. The dividends are set for five different classes of stock, with the payment scheduled for December 31, 2024, to shareholders on record as of December 17, 2024.
The company specified the dividend amounts for each class of stock: $0.50 for 8% Cumulative Redeemable Preferred Stock (NASDAQ:CHSCP), $0.49 for Class B Cumulative Redeemable Preferred Stock Series 1 (NASDAQ:CHSCO), $0.44 for Class B Reset Rate Cumulative Redeemable Preferred Stock Series 2 (NASDAQ:CHSCN), $0.42 for Class B Reset Rate Cumulative Redeemable Preferred Stock Series 3 (NASDAQ:CHSCM), and $0.46 for Class B Cumulative Redeemable Preferred Stock Series 4 (NASDAQ:CHSCL). Each share is valued at $25.00.
This financial move was documented in a Current Report on Form 8-K filed today in accordance with Nasdaq Listing Rule 5250(e)(6)(ii) and Rule 10b–17 of the Securities Exchange Act of 1934, as amended. The announcement was made by Olivia Nelligan, Executive Vice President, Chief Financial Officer and Chief Strategy Officer of CHS Inc.
CHS Inc., headquartered in Inver Grove Heights, Minnesota, has a significant presence in the agricultural sector, providing various services and products. The declaration of these dividends reflects the company's ongoing commitment to providing returns to its investors.
In other recent news, CHS Inc. has secured a $300 million revolving credit facility, amending its existing credit agreement to refinance existing debt, support working capital needs, and fund general corporate activities. The company has also disclosed its fiscal year 2024 patronage and equity redemption plans, which include allocating 10% of its earnings from patronage business to its capital reserves.
CHS Inc. plans to distribute $300 million in cash as patronage and another $300 million in cash as equity redemptions during the fiscal year ending August 31, 2025.
Moreover, CHS Inc. has extended the maturity of its receivables securitization facility and repurchase financing facility until August 27, 2025, through amendments with various parties. These recent developments are part of CHS Inc.'s broader financial strategy to maintain liquidity and operational flexibility.
The specifics of the financing facilities were not disclosed, but these moves were overseen by CHS Inc.'s Executive Vice President, Chief Financial Officer, and Chief Strategy Officer, Olivia Nelligan.
InvestingPro Insights
CHS Inc.'s recent dividend declaration aligns with its attractive dividend yield of 6.68%, as reported by InvestingPro. This high yield may be particularly appealing to income-focused investors in the current market environment. Despite facing revenue challenges, with a 20.11% decline in the last twelve months as of Q3 2024, CHS Inc. maintains a substantial market presence with a market capitalization of $373.93 million.
InvestingPro Tips highlight that CHS Inc. has maintained dividend payments for 23 consecutive years, underscoring the company's commitment to shareholder returns even in the face of revenue headwinds. This long-standing dividend history aligns with the company's recent dividend declaration across its preferred stock classes.
For investors seeking a more comprehensive analysis, InvestingPro offers 13 additional tips for CHS Inc., providing deeper insights into the company's financial health and market position.
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