Sanderson Farms Inc. have announced an increase in their quarterly dividends, along with the board providing final approval for the start of construction of their new poultry complex.
The quarterly dividend paid to shareholders will increase by 18% from 17c per share up to 20c per share. The dividend will be paid on the 15th of October to all shareholders on record at the 1st of October. Payment of the regular quarterly dividend will remain subject to Board approval each quarter.
Sanderson Farms' board also approved the start of construction on the planned new poultry complex in Palestine, Texas on the 1st of October.
The company had previously announced the selection of Palestine for the site on the 14th of February, 2013, but plans for building had been put on hold due to the uncertainties of the grain market, as well as other contingencies including obtaining Board approval to move forward with the project.
The new poultry complex will include a feed mill, hatchery, poultry processing plant and a wastewater facility. Operating at full capacity, the Palestine facility is projected to process 1.250 million head of chickens a week for the big bird deboning market.
Chairman and CEO of Sanderson Farms, Joe F. Sanderson, Jr., said "We are very pleased the Board has authorized an increase in our dividend rate and granted final approval to commence construction of our next poultry complex."
"Our solid financial and operating performance, consistent growth and strong balance sheet have allowed us to move forward on both of these actions and further demonstrate our confidence in Sanderson Farms' future and our commitment to building shareholder value."
Sanderson added, "We are excited about the new opportunities ahead for Sanderson Farms as we expand our production capacity and presence in Texas. We sincerely appreciate the support, encouragement and welcome we have received from the public officials and communities in Palestine, Anderson County, Freestone County and Austin, and we look forward to this next stage of growth for our shareholders, employees, customers and other stakeholders."
Sanderson Farms, Inc. is engaged in the production, processing, marketing and distribution of fresh and frozen chicken and other prepared food items. Last month Sanderson Farms reported that its fiscal third-quarter profit more than doubled on higher prices for its poultry products.