Natural Grocers by Vitamin Cottage, Inc. Declares Quarterly Dividend

Rhea-AI Summary

Natural Grocers by Vitamin Cottage, Inc. (NGVC) has declared a quarterly cash dividend of $0.10 per common share, to be paid on March 20, 2024. The dividend will be paid to all stockholders of record at the close of business on March 4, 2024.

Positive

• The announcement of a quarterly cash dividend shows the company's commitment to returning value to its shareholders.

Negative

• None.

Insights

Financial Analyst

The declaration of a quarterly cash dividend of $0.10 per common share by Natural Grocers by Vitamin Cottage, Inc. signals the company's confidence in its ongoing profitability and liquidity. Dividends are a tangible return on investment for shareholders and are often indicative of a company's financial health. This move could potentially attract income-focused investors and support the stock price, as regular dividends are seen as a sign of stability.

However, the size of the dividend relative to the company's earnings per share (EPS) and its dividend yield compared to industry peers are critical factors in assessing the sustainability of this dividend policy. A dividend payout ratio (dividend divided by EPS) that is too high could suggest that the company is not reinvesting enough in its own growth, which could be a concern for long-term value creation.

Market Research Analyst

Within the organic and natural food retail industry, competitive differentiation is key. The ability of Natural Grocers to pay dividends might reflect not only its financial stability but also its operational efficiency in a highly competitive market. The announcement should be contextualized within the broader trends of consumer spending on health and wellness products and how the company is positioned relative to competitors like Whole Foods or Sprouts Farmers Market.

It is also important to consider the market's reaction to dividend announcements, which can vary depending on the broader economic environment, such as interest rate trends and inflationary pressures, which affect consumer spending patterns and, consequently, the retail sector's performance.

LAKEWOOD, Colo., Feb. 8, 2024 /PRNewswire/ -- Natural Grocers by Vitamin Cottage, Inc. (NYSE: NGVC) today announced that the Company's Board of Directors has declared a quarterly cash dividend of $0.10 per common share. The dividend will be paid on March 20, 2024 to all stockholders of record at the close of business on March 4, 2024.

About Natural Grocers by Vitamin Cottage 

Natural Grocers by Vitamin Cottage, Inc. (NYSE: NGVC) is an expanding specialty retailer of natural and organic groceries, body care products and dietary supplements. The products sold by Natural Grocers must meet strict quality guidelines and may not contain artificial colors, flavors, preservatives or sweeteners, or partially hydrogenated or hydrogenated oils. The Company sells only USDA certified organic produce and exclusively pasture-raised, non-confinement dairy products, and free-range eggs. Natural Grocers' flexible smaller-store format allows it to offer affordable prices in a shopper-friendly, clean and convenient retail environment. The Company also provides extensive free science-based nutrition education programs to help customers make informed health and nutrition choices. The Company, founded in 1955, has 168 stores in 21 states. 

Visit www.NaturalGrocers.com for more information and store locations. 

Forward-Looking Statements 

The following constitutes a "safe harbor" statement under the Private Securities Litigation Reform Act of 1995. Except for the historical information contained herein, statements in this release are "forward-looking statements" and are based on management's current expectations and are subject to uncertainty and changes in circumstances. All statements that are not statements of historical fact are forward-looking statements. Actual results could differ materially from these expectations due to changes in global, national, regional or local political, economic, inflationary, deflationary, recessionary, business, interest rate, labor market, competitive, market, regulatory and other factors, and other risks detailed in the Company's Annual Report on Form 10-K for the fiscal year ended September 30, 2023 (the Form 10-K) and the Company's subsequent quarterly reports on Form 10-Q. The information contained herein speaks only as of the date of this release and the Company undertakes no obligation to publicly update forward-looking statements, except as may be required by the securities laws. 

For further information regarding risks and uncertainties associated with the Company's business, please refer to the "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" sections of the Company's filings with the Securities and Exchange Commission, including, but not limited to, the Form 10-K and the Company's subsequent quarterly reports on Form 10-Q, copies of which may be obtained by contacting Investor Relations at 303-986-4600 or by visiting the Company's website at http://Investors.NaturalGrocers.com. 

Investor Contact:

Reed Anderson, ICR, 646-277-1260, reed.anderson@icrinc.com

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SOURCE Natural Grocers by Vitamin Cottage, Inc.

FAQ

What is the dividend amount declared by Natural Grocers by Vitamin Cottage, Inc. (NGVC)?

The dividend declared is $0.10 per common share.

When will the dividend be paid to the stockholders of Natural Grocers by Vitamin Cottage, Inc. (NGVC)?

The dividend will be paid on March 20, 2024.

Who is eligible to receive the dividend declared by Natural Grocers by Vitamin Cottage, Inc. (NGVC)?

All stockholders of record at the close of business on March 4, 2024 are eligible to receive the dividend.