Federated Investors Inc. of Pittsburgh, a money market fund manager, announced it will pay its first-ever special dividend.
It will pay out $2.76 a share on Sept. 15 to shareholders of record on Sept. 9, according to a regulatory filing Tuesday.
Federated's strong financial position has allowed it to pay out the special dividend at a time when many financial companies, including asset managers, are grappling with tumbling stock markets and heavy writeoffs.
In all, Federated investors will receive $3 a share in the third quarter, the company said. It noted that it paid out a regular dividend of 24 cents a share last week, and said its board has authorized it to buy back as many as 5 million additional shares of its class B common stock.
The company plans to use money from a new $140 million term loan agreement, a $200 million revolving credit facility, and $135 million in cash balances to pay for the special dividend.
