On December 15, 2022, Alico, Inc. (ALCO) announced a 90% dividend cut to $0.05 quarterly per share. This follows massive dividend hikes by the citrus producer in the previous three years.

On October 14, 2022, the Company paid a fourth quarter cash dividend of $0.50 per share on its outstanding common stock to stockholders of record as of September 30, 2022. Additionally, the Company has declared a first quarter fiscal year 2023 cash dividend of $0.05 per share on its outstanding common stock to stockholders of record as of December 30, 2022.

“Alico has paid common dividends to shareholders consistently since it became publicly held more than 6 decades ago. The rate of increased dividend payments since 2019 has been a source of pride as ranch sales proceeds and operations enabled significant amounts of capital to be returned to shareholders. However, taking into account the impact of the recent storm, Alico’s Board of Directors unanimously voted to reduce its next quarterly common dividend to $0.05 per share. As the Company recovers from the effects of the recent hurricane, future capital allocation decisions will be evaluated in an effort to maximize returns to shareholders, which may include but are not limited to pursuing opportunities to acquire additional citrus acreage at attractive prices, repurchasing common shares, making other acquisitions, or even considering special dividends as asset sales, such as additional portions of the Alico Ranch, are realized.”

Alico is one of the largest citrus producers in the United States of America. The company owns acres of land in eight Florida counties (Charlotte, Collier, DeSoto, Glades, Hardee, Hendry, Highlands and Polk) including mineral rights acres. Alico's principal lines of business are citrus groves and conservation. The company operates two divisions: Alico Citrus, a citrus producer, and Water Resources and Other Operations, a water storage and environmental services division. Alico, Inc. was incorporated under the laws of the state of Florida in 1960.