SIGA Technologies — Dividends bring cheer amid market uncertainty

SIGA Technologies has declared a special dividend of $0.6 per share, marking a fourth straight year of dividend declarations. The outlay is at a similar level to the one paid in March 2024 ($43m based on current shares outstanding) and will be payable on 15 May 2025 to shareholders of record on 29 April. The strong end-FY24 cash position ($155.4m; no debt) suggested that a dividend payment announcement was widely anticipated, although we note that the amount was higher than the $0.5/share we had estimated. The dividend translates to a best-in-class payout ratio of c 72% (on FY24 EPS of $0.83) and a healthy dividend yield of c 10%. Given the recent market uncertainty, which has challenged capital returns, we believe this secondary income stream adds to SIGA’s appeal as an investment option among biopharma companies.