MBIA (NYSE:MBI) stock is taking off on Friday after the financial insurance company announced an extraordinary cash dividend for investors.
MBIA will be paying a dividend of $8 per share to shareholders on Dec. 22. Investors in MBI stock will have to be on record as of Dec. 18 to receive this dividend. MBIA notes that this totals $409 million based on its 51.1 million shares outstanding.
MBIA is paying out this dividend to investors after receiving an extraordinary $550 million dividend from its wholly-owned subsidiary, National Public Finance Guarantee Corporation. The subsidiary also paid another dividend of $97.245 million.
MBIA also explains what will have to the other money from that dividend. The company intends to use it for general corporate purposes. It notes this may include operating expenses and debt service obligations.
MBIA Stock Movement on Friday
MBIA stock is seeing heavy trading on Friday following its dividend announcement. That has more than 756,000 shares of the stock changing hands as of this writing. That’s already well above its daily average trading volume of about 371,000 shares.
MBIA stock is up 65.3% as of Friday morning.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.