Food company Pilgrim’s Pride Corporation (NASDAQ:PPC) shares are trading higher in premarket on Friday.

The company has introduced a capital allocation strategy designed to strengthen its financial position, broaden its diverse portfolio, and generate long-term value for its shareholders.

As a component of this initiative, the board has approved a special cash dividend of $6.30 per share. With the current share count, the total special dividend payout is approximately $1.5 billion.

This payment will be made on April 17, 2025, to shareholders on record as of April 3, 2025.

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“Pilgrim’s is confident in the future of our business and we believe our capital allocation strategy positions the company for continued, disciplined growth and enhanced earnings potential across our diversified portfolio,” said CEO Fabio Sandri.

“The Board’s decision to pay a special dividend reflects our strong balance sheet and our commitment to create long-term stockholder value.”

In addition to the dividend, Pilgrim’s Pride has outlined steps to further strengthen its business operations.

The company is focusing on key areas such as expanding its prepared foods segment, increasing small bird production for key customer demands, and transforming a major bird facility into a case-ready plant to support retail growth.

Furthermore, Pilgrim’s plans to boost protein conversion capacity to enhance its product offerings and minimize risk.

Over the past five years, Pilgrim’s Pride has committed huge capital to various initiatives, including more than $950 million in acquisitions, $1.8 billion in share buybacks and dividends, and $2.2 billion in capital expenditures.

Price Action: PPC shares traded higher by 5.39% at $52.98 in premarket on Friday.

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