McClatchy Declares One Last Dividend

To conserve cash, Sacramento Bee publisher to suspend quarterly dividends

It had to end. That is the cash dividend being paid by Sacramento-based McClatchy, Inc.(MNI), publisher of the Sacramento Bee.

With it's shares trading yesterday at $.76 per share and an eye-popping yield of 42.9%, it was just a matter of time before MNI had to suspend it's dividend.

The hammer came down Tuesday when MNI said it would pay the next quarterly dividend but would thereafter suspend payment. Management said the move is designed to conserve cash amid a quickly deteriorating print advertising market.

With it's share trading in penny stock range and an onerous debt burden, this latest development signals more trouble ahead for MNI.