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MBIA (NYSE:MBI) The stock is soaring on Friday after the financial insurance company announced an extraordinary cash dividend for investors.
MBIA will distribute a dividend of $8 per share to shareholders on December 22nd. Investors in MBI shares must be registered as of December 18th to receive this dividend. MBIA notes that this amount totals $409 million based on the 51.1 million shares outstanding.
MBIA is paying this dividend to investors after receiving a $550 million special dividend from its wholly owned subsidiary National Public Finance Guarantee Corporation. In addition, the subsidiary paid another dividend of $97.245 million.
MBIA also explains what will happen to the remaining money from this dividend. The Company intends to use it for general corporate purposes. Please note that this may include operating costs and debt service obligations.
MBIA stock movement on Friday
MBIA stock is seeing strong trading on Friday following the dividend announcement. As of this writing, more than 756,000 shares have changed hands. This is already well above the daily average trading volume of around 371,000 shares.
MBIA stock is up 65.3% since Friday morning.
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At the time of publication, William White did not hold, directly or indirectly, any positions in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to those of InvestorPlace.com Publishing Guidelines.
Article printed by InvestorPlace Media, https://investorplace.com/2023/12/why-is-mbia-mbi-stock-stock-up-65-today/.
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