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DEERFIELD, Ill - BAB, Inc. (OTCQB: BABB), the franchisor of Big Apple Bagels and other brands, declared a quarterly distribution of $0.01 per share, payable on July 14, 2025, to shareholders on record as of June 26, 2025. The company boasts an impressive 8.42% dividend yield and has maintained dividend payments for 23 consecutive years, according to InvestingPro data. The company noted that for tax purposes, part of this distribution may be considered a return of capital, with the remainder potentially treated as a dividend. The exact breakdown will be confirmed post the fiscal year ending November 30, 2025, with details provided to shareholders in early 2026.
The announcement comes as the company continues its operations in the franchising and licensing sector, with brands that include My Favorite Muffin®, SweetDuet®, and Brewster’s® coffee. BAB, Inc. trades on the OTCQB marketplace under the ticker symbol BABB. The company maintains strong operational efficiency with a 67.2% gross profit margin and excellent financial health, as indicated by InvestingPro’s comprehensive analysis.
This distribution strategy may affect shareholders’ tax liabilities, as the portion treated as a return of capital could reduce the cost basis of their investment, while the portion treated as a dividend would be subject to different tax considerations. With a current ratio of 3.3 and more cash than debt on its balance sheet, BAB demonstrates strong financial positioning. InvestingPro analysis suggests the stock is currently trading below its Fair Value. The final tax treatment of these distributions will depend on the company’s earnings and will be formally determined in January 2026.
BAB, Inc. has cautioned investors that certain statements in the press release are forward-looking and subject to risks and uncertainties that could cause actual results to differ materially from those projected. The company has referred to its filings with the SEC for a more detailed discussion of potential risks.
This distribution announcement is based on a press release statement from BAB, Inc. and is intended to inform shareholders and the market of the upcoming payment and its potential tax implications.
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