Ingles Markets, Incorporated Declares Quarterly Cash Dividend

Rhea-AI Summary

Ingles Markets, Incorporated (NASDAQ: IMKTA) declares a cash dividend of $0.165 per share on all Class A Common Stock and $0.15 per share on all Class B Common Stock, payable on January 19, 2024. The company operates 198 supermarkets and owns a fluid dairy facility.

Insights

Financial Analyst

The announcement of a cash dividend by Ingles Markets, Incorporated represents a direct return on investment for shareholders and is a strong signal of the company's current financial health and management's confidence in its cash flow stability. The specified annual rates of $0.66 for Class A Common Stock and $0.60 for Class B Common Stock reflect a commitment to shareholder value. This decision may influence investor sentiment and potentially affect the stock's liquidity as dividends often attract income-focused investors.

However, the sustainability of such dividends should be assessed in the context of the company's payout ratio, free cash flow and long-term earnings potential. It would be prudent for investors to consider the company's historical dividend patterns and how these payouts align with its capital expenditure requirements, especially given the capital-intensive nature of the supermarket industry, which requires continuous investment in inventory, facilities and technology to remain competitive.

Market Research Analyst

From a market perspective, Ingles Markets' dividend declaration can be seen as a reflection of its competitive positioning within the grocery sector. Operating in six southeastern states, the company's regional focus and diversified operations, including supermarkets and a fluid dairy facility, suggest a vertically integrated strategy that may provide resilience against market volatility and supply chain disruptions.

Investors should also consider the broader industry trends, such as consumer spending habits, inflation rates and the impact of e-commerce on brick-and-mortar grocery stores. Understanding these factors is essential for evaluating the long-term viability of Ingles Markets' dividend policy and its ability to maintain or grow its market share in a highly competitive landscape.

Economist

Dividend announcements, such as the one by Ingles Markets, can have macroeconomic implications. They often reflect underlying economic conditions, such as consumer confidence and spending power, particularly in the retail and consumer staples sectors. The grocery industry is generally considered to be recession-resistant; however, it is not immune to economic downturns.

An economist might analyze the broader economic indicators, such as employment rates and disposable income levels, to gauge the potential impact on the company's future revenue streams. Additionally, the timing of the dividend payout, set for January 2024, may coincide with post-holiday financial behaviors when consumers might be more conservative with spending, potentially affecting the company's Q1 performance in that fiscal year.

ASHEVILLE, N.C.--(BUSINESS WIRE)-- Ingles Markets, Incorporated (NASDAQ: IMKTA) today announced that its Board of Directors has declared a cash dividend of $0.165 (sixteen and one-half cents) per share on all its Class A Common Stock and $0.15 (fifteen cents) per share on all its Class B Common Stock. This is an annual rate of $0.66 and $0.60 per share, respectively. Dividends on both the Class A and Class B Common Stock are payable January 19, 2024, to all shareholders of record on January 12, 2024.

Ingles Markets, Incorporated is a leading grocer with operations in six southeastern states. Headquartered in Asheville, North Carolina, the Company operates 198 supermarkets. In conjunction with its supermarket operations, the Company operates neighborhood shopping centers, most of which contain an Ingles supermarket. The Company also owns a fluid dairy facility that supplies Ingles supermarkets and unaffiliated customers. To learn more about Ingles Markets visit .

View source version on businesswire.com: https://www.businesswire.com/news/home/20240102547163/en/

Ingles Markets, Inc.

Pat Jackson, Chief Financial Officer

pjackson@ingles-markets.com

(828) 669-2941 (Ext. 223)

Source: Ingles Markets, Incorporated

FAQ

What is the dividend amount declared by Ingles Markets, Incorporated?

Ingles Markets, Incorporated declared a cash dividend of $0.165 per share on all its Class A Common Stock and $0.15 per share on all its Class B Common Stock.

When are the dividends payable to shareholders?

The dividends on both the Class A and Class B Common Stock are payable on January 19, 2024, to all shareholders of record on January 12, 2024.

How many supermarkets does Ingles Markets, Incorporated operate?

Ingles Markets, Incorporated operates 198 supermarkets.

What other operations does Ingles Markets, Incorporated have besides supermarkets?

In addition to supermarkets, the company also operates neighborhood shopping centers, most of which contain an Ingles supermarket, and owns a fluid dairy facility that supplies Ingles supermarkets and unaffiliated customers.