The value of small cap stock for American Vanguard Corp. (NYSE:AVD) rose on Monday after the agricultural products maker announced it would increase its dividend.
According to the Orange County Business Journal, the company raised its semi-annual cash dividend to 7 cents per share, compared with 5 cents. This sent the company's stock above its 52-week high, and hit a market value of $917.3 million. The payments are set to be distributed in October.
"We are pleased to declare this semi-annual dividend, which continues our 18 year history of providing such returns to our shareholders," said Eric Wintemute, company chairman and CEO. "This semi-annual dividend brings our total calendar 2012 distribution to $0.12, a 50 percent increase over the $0.08 distributed in 2011. This action gives investors a share of the excellent financial performance we have had thus far in 2012 and reflects the confidence that management and the Board of Directors have in the Company's future."
As of 3:56 p.m. on Monday, September 17, the company's shares were up 9.6 percent, or $2.99, to $34.00.