Sun Hydraulics pays out $2.3M

SARASOTA — Sun Hydraulics Corp. (symbol: SNHY) will pay investors roughly $2.3 million in cash dividends next month, increasing its payout by 50% through a two-step process announced today.

On July 15, shareholders of record from June 30 will receive a 50% stock dividend, increasing Sun's total outstanding shares from 17.1 million to 25.6 million. Then, shareholders will be paid a dividend of $0.09 for each share owned, leading to a total payout of $2.3 million.

CEO Allen Carlson says the company is increasing its cash dividend because of the firm's strong financial performance recently. The decision to issue a stock dividend is an attempt to attract additional investor activity.

"The board of directors believes the stock dividend will help improve shareholder value by increasing the marketability and liquidity of Sun's stock,” Carlson says in a statement.

Sun Hydraulics is a hydraulic device manufacturer based in Sarasota. The company generated $31 million in operating income from $150.7 million in 2010 revenues.