Shares of Glatfelter Corp. GLT, +2.41% dropped 4.7% in premarket trading Wednesday, after the supplier of engineered materials said it suspended its quarterly dividend, as part of a “reprioritization” of capital as it focuses its efforts on optimizing financial results. The company had last paid a quarterly dividend of 14 cents a share in June, which at Tuesday’s stock closing price of $4.67 implied a dividend yield of 11.76%, which compares with the implied yield for the S&P 500 SPX, -1.13% of 1.71%. “This is a prudent step that will redirect capital back to the business at a critical juncture for the company,” said non-executive chairman Kevin Fogarty. “With enhanced financial flexibility, we will be better positioned to make the changes and investments needed to drive improvements throughout the business while navigating the ongoing global geopolitical and economic challenges.” The stock has plunged 72.9% year to date through Tuesday, while the S&P 500 has lost 19.1%.
