NOVATO – The board of directors for Hennessy Advisors (OTCBB: HNNA), the Novato-based investment management firm, announced a 25 percent increase in its annual cash dividend today; from 10 cents to 12.5 cents per share for calendar year 2012.
The announcement corresponded with a report of the firm’s earnings in the first quarter of their fiscal year, ending Dec. 31. The firm announced $1.72 million in total revenue in the quarter, an 11.9 percent decrease from the same quarter in 2010 and representing diluted earnings of 3 cents per share. Net income fell to $152,267, versus $266,258 for the same period in the prior year.
The firm attributed the decrease in revenue to a 12 percent reduction in the total assets under their management, as well as a 13 percent decrease in average assets held for the period.
“While revenue and earnings fell during this first quarter of fiscal 2012, we remained profitable and continued to grow our already strong cash position,” said Neil Hennessy, president, chairman and CEO.
Hennessy Advisors pays its dividend quarterly, and the first payment will be distributed on March 1 to those holding shares as of Feb. 7. Based on the current share price of $2.70, the dividend represents a 4.6 percent yield.