Shutterstock Increases Quarterly Dividend By 11% to $0.30

Rhea-AI Summary

Shutterstock, Inc. (SSTK) has declared a cash dividend of $0.30 per share of outstanding common stock, representing an 11% increase over the previous quarterly dividend. The dividend is payable on March 14, 2024, to stockholders of record as of February 29, 2024. This decision reflects the company's growth in operating profitability and cash flow, fulfilling its commitment to return value to stockholders.

Financial Analyst

The declaration of an increased cash dividend by Shutterstock, Inc. is a significant indicator of the company's financial health and confidence in its future cash flows. A dividend increase of approximately 11% is quite substantial, particularly when considering the average dividend growth rate for the S&P 500 is historically around 5-6% annually. This move could be interpreted as a signal that the company's management believes in the sustainability of its earnings and its ability to generate excess cash, which can be distributed to shareholders.

From a shareholder's perspective, this action may make Shutterstock's stock more attractive as it implies a commitment to returning value to stockholders, potentially leading to a positive impact on the stock price. The market often views dividend increases as a bullish sign, as they typically reflect a company's strong future prospects. However, it's also crucial to assess the payout ratio to ensure that the dividends are not compromising the company's growth opportunities or operational needs.

Market Research Analyst

Shutterstock's decision to increase its quarterly dividend may reflect broader industry trends where companies with robust digital assets and platforms are experiencing growth in operating profitability. Given the company's role as a creative platform in a digital economy where content is king, Shutterstock's performance may be benefiting from the increased demand for high-quality digital content across various sectors.

It is important to contextualize this dividend increase within the competitive landscape of the creative content industry. If Shutterstock is outpacing its competitors in terms of revenue growth and cash flow generation, this may suggest a competitive advantage that could be sustainable over the long term. A deeper analysis of the company's financial statements would reveal whether this dividend increase is supported by a strong balance sheet and whether it might affect the company's ability to invest in strategic opportunities.

Economist

The announcement by Shutterstock to increase its cash dividend comes at a time when the economy is facing various macroeconomic factors that can influence investor sentiment. For instance, in an environment with rising interest rates, companies with a track record of paying and increasing dividends could be seen as a haven for investors seeking income-generating investments. However, it is also essential to consider the inflationary context and whether the real return on these dividends is attractive after adjusting for inflation.

Furthermore, the increase in dividends may reflect the company's capital allocation strategy in response to the macroeconomic environment. In a period of economic uncertainty, a company choosing to return capital to shareholders rather than reinvesting it heavily in the business could be seen as a conservative approach, prioritizing immediate shareholder returns over potential long-term growth investments.

New York, Jan. 30, 2024 /PRNewswire/ -- Shutterstock, Inc. (NYSE: SSTK), a leading global creative platform connecting brands and businesses to high-quality content, today announced that its Board of Directors has declared a cash dividend of $0.30 per share of outstanding common stock on January 29, 2024, payable on March 14, 2024, to stockholders of record at the close of business on February 29, 2024. This represents an increase of approximately 11% over the previous quarterly dividend of $0.27 per share of outstanding common stock.

Commenting on the announcement, Paul Hennessy, the Company's Chief Executive Officer, said, "The Board's decision to increase the quarterly dividend is representative of the growth we have experienced in our operating profitability and cash flow, and I am pleased that we are able to continue fulfilling our commitment to return value to stockholders."

ABOUT SHUTTERSTOCK

Shutterstock, Inc. (NYSE: SSTK) is a premier partner for transformative brands, digital media and marketing companies, empowering the world to create with confidence. Fueled by millions of creators around the world and a fearless approach to product innovation, Shutterstock is the leading global platform for licensing from the most extensive and diverse collection of high-quality 3D models, videos, music, photographs, vectors and illustrations. From the world's largest content marketplace, to breaking news and A-list entertainment editorial access, to all-in-one content editing platform and studio production service—all using the latest in innovative technology—Shutterstock offers the most comprehensive selection of resources to bring storytelling to life.

Learn more at www.shutterstock.com and follow us on LinkedIn, Instagram, Twitter, Facebook and YouTube.

View original content to download multimedia:https://www.prnewswire.com/news-releases/shutterstock-increases-quarterly-dividend-by-11-to-0-30--302047681.html

SOURCE Shutterstock, Inc.

What is the dividend amount declared by Shutterstock, Inc. (SSTK)?

Shutterstock, Inc. (SSTK) has declared a cash dividend of $0.30 per share of outstanding common stock.

When is the dividend payable to stockholders of Shutterstock, Inc. (SSTK)?

The dividend is payable on March 14, 2024, to stockholders of record as of February 29, 2024.

What is the percentage increase in the quarterly dividend declared by Shutterstock, Inc. (SSTK)?

The quarterly dividend has increased by approximately 11% over the previous dividend.

Who commented on the announcement of the dividend increase by Shutterstock, Inc. (SSTK)?

Paul Hennessy, the Company's Chief Executive Officer, commented on the announcement.

What did the CEO of Shutterstock, Inc. (SSTK) say about the dividend increase?

The CEO stated that the decision to increase the quarterly dividend reflects the company's growth in operating profitability and cash flow, fulfilling its commitment to return value to stockholders.