Why did Imation pay a dividend?
We view the declaration of a dividend as another way for Imation to deliver value to shareholders. Our data storage focused strategy has resulted in solid cash flows, a strong market position, and what we believe is a sustainable business model. We remain excited about the continued potential for growth in the data storage removable media industry. As these advantages have become more visible to investors over the past two years, Imation has enjoyed healthy stock price appreciation. We believe that initiation of a cash dividend will make Imation stock attractive to a broader range of investors as we continue to build value for customers, employees and shareholders.
