GREENSBORO, N.C., Feb. 17, 2011 /PRNewswire/ -- Lorillard, Inc. (NYSE: LO), the third largest manufacturer of cigarettes in the United States, announced today that its Board of Directors approved a 16% increase in the quarterly dividend on its common stock from $1.125 per share to $1.30 per share. The dividend is payable on March 11, 2011 to stockholders of record as of March 1, 2011.
This marks the second increase in the Company's dividend rate in the past six months and the third dividend increase since Lorillard became an independent publicly traded company in June 2008.
"Based on the strength of our financial performance, we are very pleased to take this noteworthy step of again increasing our dividend, which in aggregate has resulted in a 30 percent increase in our quarterly dividend rate over the last six months," stated David H. Taylor, Lorillard Executive Vice President and Chief Financial Officer. "This action underscores our confidence in Lorillard's business model and our commitment of returning cash to our shareholders as evidenced by our targeted dividend payout ratio of 70-75 percent of earnings as well as our ongoing $1 billion share repurchase program."
About Lorillard, Inc.
Lorillard, Inc. (NYSE: LO) is the third largest manufacturer of cigarettes in the United States. Founded in 1760, Lorillard is the oldest continuously operating tobacco company in the U.S. Newport, Lorillard's flagship menthol-flavored premium cigarette brand, is the top selling menthol and second largest selling cigarette in the U.S. In addition to Newport, the Lorillard product line has four additional brand families marketed under the Kent, True, Maverick, and Old Gold brand names. These five brands include 43 different product offerings which vary in price, taste, flavor, length and packaging. Lorillard maintains its headquarters and manufactures all of its products in Greensboro, North Carolina.
Certain statements made in this press release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, or the Reform Act. Forward-looking statements include, without limitation, any statement that may project, indicate or imply future results, events, performance or achievements, and may contain the words "expect," "intend," "plan," "anticipate," "estimate," "believe," "may," "will be," "will continue," "will likely result" and similar expressions. In addition, any statement that may be provided by management concerning future financial performance (including future revenues, earnings or growth rates), ongoing business strategies or prospects and possible actions by Lorillard, Inc. are also forward-looking statements as defined by the Reform Act.
Forward-looking statements are based on current expectations and projections about future events and are inherently subject to a variety of risks and uncertainties, many of which are beyond our control, that could cause actual results to differ materially from those anticipated or projected. Information describing factors that could cause actual results to differ materially from those in forward-looking statements is available in Lorillard, Inc.'s filings with the Securities and Exchange Commission (the "SEC"), including but not limited to, our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. These filings are available from the SEC over the Internet or in hard copy, and are available on our website at www.lorillard.com. Forward-looking statements speak only as of the time they are made, and we expressly disclaim any obligation or undertaking to update these statements to reflect any change in expectations or beliefs or any change in events, conditions or circumstances on which any forward-looking statement is based.
SOURCE Lorillard, Inc.