Viacom raises dividend to 25 cents

The new dividend will be payable July 1 to shareholders of record on June 15, New York-based Viacom said yesterday in a statement. The previous dividend was 15 cents.

“Viacom is in excellent shape financially and momentum across our businesses is strong,’’ Philippe Dauman, chief executive, said in the statement. The action reflects “the confidence we have in our ability to generate ample free cash flow to support returning greater value to our stockholders while continuing to maintain a strong balance sheet and invest in the long-term growth of our operations.’’

Redstone, who turns 88 in two days, controls Viacom through his holdings of the company’s voting stock, which represents less than 10 percent of the total equity. CBS Corp., Redstone’s other key holding, voted this month to double its quarterly dividend to 10 cents a share, raising the annual payment to his National Amusements company to about $17 million.

Viacom rose 1 cent to $49.95 in New York Stock Exchange composite trading. CBS fell 3 cents to $26.33 and has gained 38 percent.

The dividend gains represent a partial restoration of income Redstone and other CBS shareholders received before the 2008 economic downturn. In February 2009, New York-based CBS cut its quarterly dividend to 5 cents a share from 27 cents as advertising sales fell and the company faced bond maturities in 2010.

National Amusements sold almost $1 billion of stock in both companies in 2009 to repay loans. Redstone owns 41.4 million Viacom voting shares, or 80 percent of the voting stock, along with 1,296 nonvoting shares, according to regulatory filings. He holds 34.5 million voting shares of CBS, or 79 percent, and 8.26 million nonvoting shares, filings show.