Cherokee Inc. (CHKE) announced a new chairman today, and used the opportunity to sneak news of a 47% dividend cut onto the seventh paragraph of the press release. Shares still plummeted.
The clothing brand company declared a quarterly dividend of $0.20 per share, a sharp 47% reduction from the $0.38 per share paid each of the last four quarters, but failed to mention the comparison to prior payouts until the second to last paragraph of the statement. This is the third time since mid-2008 Cherokee has deflated its quarterly dividend, which has now fallen 73% off its peak level of $0.75 per share.
Shares of CHKE are trading at $16.67 (-8.26%) as we approach noon, where they now carry a 4.80% dividend yield.