What was the amount of Budget's dividends paid per share in 2023?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
ility. With respect to certain of the agreementoned guarantees, such as indemnifications provided to landlords against third-party claims for the use of real estate property leased by us, we maintain insurance coverage that mitigates our potential exposure.
16. Stockholders' Equity
Cash Dividend Payments
During 2024 and 2022, we did not declare or pay any cash dividends. In December 2023
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 79)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, the company paid a special cash dividend in December 2023 of $10.00 per share to all holders of common stock as of December 15, 2023. The total dividend payment amounted to $355 million.
This dividend payment represents a distribution of profits to the company's shareholders. However, the ability of Budget to pay dividends in the future is subject to certain limitations.
Specifically, Budget's senior credit facility, the indentures governing its senior notes, and its vehicle financing programs can restrict its capacity to distribute dividends. Prospective franchisees should be aware that such restrictions could impact future dividend payouts.