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LOS ANGELES - B. Riley Financial, Inc. (NASDAQ: RILY) announced dividends for its preferred stock, payable at the end of July to holders of record by mid-July. The company declared cash dividends on its 6.875% Series A Cumulative Perpetual Preferred Stock (NASDAQ: RILYP) and its 7.375% Series B Cumulative Perpetual Preferred Stock (NASDAQ: RILYL), both of which are traded as depositary shares.
The dividend for the 6.875% Series A Preferred Stock is set at $0.42968750 per depositary share, while the 7.375% Series B Preferred Stock will see a dividend of $0.4609375 per depositary share. Each depositary share represents a 1/1000th fractional interest in a share of the respective Preferred Stock, with a liquidation preference of $25.00 per depositary share.
These dividends are scheduled to be paid on or about July 31, 2024, to shareholders who are on record as of the close of business on July 22, 2024.
B. Riley Financial is a diversified provider of financial services, offering solutions tailored to the needs of its clients at different stages of the business life cycle. The firm's services span across various domains, including investment banking, institutional brokerage, and investment management, among others. Additionally, B. Riley engages in investment activities for the benefit of its shareholders and originates senior secured loans through some of its affiliates.
This dividend announcement is based on a press release statement from B. Riley Financial.
In other recent news, B. Riley Financial's Q1 2024 results showcase a mixed financial performance. The company reported a drop in operating adjusted EBITDA to $66 million from the prior year's $88 million, alongside a net loss of $51 million attributable to common shareholders, largely due to a $59 million investment loss.
However, it wasn't all negative, with the Advisory Services segment achieving record results and improved operating margins seen in Wealth Management. Total revenues for the quarter reached $343 million.
B. Riley Financial also declared a dividend of $0.50 per share, with an unrestricted cash position of $191 million and total debt approximating $2.2 billion. The company's outlook remains positive with the management expressing optimism about the recovery of the PC accessory market and ongoing projects in Europe contributing to future growth. Furthermore, the potential sale of Great American Group is being explored to create additional value.
These developments come amidst a challenging period for B. Riley Financial with varied performances across its business segments.
InvestingPro Insights
B. Riley Financial, Inc. (NASDAQ: RILY) continues to reward shareholders with consistent dividend payments, highlighting its commitment to returning value. While the company has maintained dividend payments for 11 consecutive years, it's important to note that the stock has experienced significant price volatility recently. According to InvestingPro Tips, the stock is currently trading near its 52-week low and has taken a considerable hit over the past week, month, and six months, with a one-week price total return of -10.83% and a one-month price total return of -33.44%.
Despite these challenges, the firm's dividend yield stands at a notable 13.34%, which is particularly attractive for income-focused investors. However, the company's fundamentals reflect some concerns; the P/E Ratio (Adjusted) for the last twelve months as of Q1 2024 is at -61.85, suggesting that the company is not profitable over this period. Additionally, the gross profit margin is negative at -1.24%, indicating struggles in maintaining profitability on its revenues, which totaled $1221.83M during the same timeframe.
For those looking to delve deeper into B. Riley Financial's performance and strategic positioning, InvestingPro offers a wealth of additional tips and insights. There are 14 more InvestingPro Tips available, which could provide a more comprehensive understanding of the company's financial health and market position. Interested readers can use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, unlocking valuable investment intelligence.
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