Ault Alliance Declares Monthly Cash Dividend of $0.2708333 Per Share of 13.00% Series D Cumulative Redeemable Perpetual Preferred Stock
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Insights
Dividend announcements, especially those pertaining to a consistent track record, are significant indicators of a company's financial health and its ability to generate cash flow. In the case of Ault Alliance, the declaration of a monthly cash dividend for the 19th consecutive month suggests a stable and possibly growing stream of income, which can be attractive to income-focused investors. This may signal underlying strength in the company's operations and strategic initiatives.
However, the high dividend yield of 13.00% on the preferred stock is notably above industry averages, which typically range between 2% and 6% for healthy companies. This could indicate a higher risk profile or a need to incentivize investors for the additional risk associated with the company. Investors should be cautious and consider the sustainability of such high dividend payments in the long term, as they may not be reflective of the company's operational performance but rather a strategic approach to attract capital.
It's also crucial to analyze the company's earnings, payout ratio and debt levels to assess whether the dividend is supported by fundamentals or if it might be at risk in an economic downturn. A deep dive into Ault Alliance's financial statements and market position would provide a clearer picture of the risks and opportunities associated with this investment.
For investors, the consistent payment of dividends can be a sign of a company's commitment to shareholder returns, which may enhance the attractiveness of Ault Alliance's preferred shares as a stable income-generating investment. The preference for such stocks might increase among risk-averse investors or those seeking to balance their portfolios with assets that provide regular income.
However, strategic growth opportunities mentioned by the CFO suggest that the company is actively seeking to expand or diversify, which could affect future dividend policies if capital is redirected towards growth investments. This balance between rewarding investors and funding growth initiatives is crucial, as it can impact the company's share price and overall market sentiment.
Investors should also consider market dynamics, such as interest rate trends and economic forecasts, as these can influence the performance of dividend-paying stocks. In a rising interest rate environment, for example, high-dividend stocks might become less attractive compared to fixed-income securities offering similar yields with potentially lower risk.
The announcement by Ault Alliance highlights the importance of evaluating the risk-reward profile of high-dividend stocks. A 13.00% yield is substantially higher than the average, which could suggest that the market perceives greater risk, potentially from the company's sector, business model, or financial stability. Risk management involves assessing not just the dividend's attractiveness but also the company's ability to maintain such payouts during economic stress.
Investors should conduct a thorough risk assessment, considering factors such as the company's debt levels, interest coverage ratios and cash flow adequacy. Additionally, the sustainability of Ault Alliance's dividends could be scrutinized in the context of its earnings volatility and the cyclical nature of the markets it operates in.
Understanding the company's long-term strategic plan and how it aligns with dividend policy is also critical. If dividends are being funded by debt rather than operational cash flow, this could be unsustainable in the long term and might lead to a re-evaluation of the investment by shareholders.
The December 2023 Dividend Represents 19 Consecutive Months of Cash Dividends on the Series D Cumulative Redeemable Preferred Stock
Kenneth S. Cragun, the Company’s Chief Financial Officer, stated, “We are immensely proud to announce the declaration of our monthly cash dividend for the 19th consecutive month. This achievement underscores our steadfast commitment to delivering promised value to our investors. As Ault Alliance continues to navigate through dynamic markets and pursue strategic growth opportunities, the trust and support of our investors have been instrumental in our journey, and we look forward to continuing our shared success.”
Link to NYSE quote for the Company’s
For more information on Ault Alliance and its subsidiaries, Ault Alliance recommends that stockholders, investors, and any other interested parties read Ault Alliance’s public filings and press releases available under the Investor Relations section at www.Ault.com or available at www.sec.gov.
About Ault Alliance, Inc.
Ault Alliance, Inc. is a diversified holding company pursuing growth by acquiring undervalued businesses and disruptive technologies with a global impact. Through its wholly and majority-owned subsidiaries and strategic investments, Ault Alliance owns and operates a data center at which it mines Bitcoin and offers colocation and hosting services for the emerging artificial intelligence ecosystems and other industries, and provides mission-critical products that support a diverse range of industries, including metaverse platform, oil exploration, crane services, defense/aerospace, industrial, automotive, medical/biopharma, consumer electronics, hotel operations and textiles. In addition, Ault Alliance extends credit to select entrepreneurial businesses through a licensed lending subsidiary. Ault Alliance’s headquarters are located at 11411 Southern Highlands Parkway, Suite 240,
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements generally include statements that are predictive in nature and depend upon or refer to future events or conditions, and include words such as “believes,” “plans,” “anticipates,” “projects,” “estimates,” “expects,” “intends,” “strategy,” “future,” “opportunity,” “may,” “will,” “should,” “could,” “potential,” or similar expressions. Statements that are not historical facts are forward-looking statements. Forward-looking statements are based on current beliefs and assumptions that are subject to risks and uncertainties.
Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update any of them publicly in light of new information or future events. Actual results could differ materially from those contained in any forward-looking statement as a result of various factors. More information, including potential risk factors, that could affect the Company’s business and financial results are included in the Company’s filings with the
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Ault Alliance Investor Contact:
IR@Ault.com or 1-888-753-2235
Source: Ault Alliance, Inc.
FAQ
What is the dividend amount declared by Ault Alliance, Inc. for its 13.00% Series D Cumulative Redeemable Perpetual Preferred Stock?
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What is the record date for the declared dividend by Ault Alliance, Inc.?
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