Sanderson Farms, Inc. Announces Increase in Quarterly Dividend

Sanderson Farms, Inc. (NASDAQ: SAFM) today announced that its Board of Directors has declared a regular quarterly cash dividend of $0.44 (forty-four cents) per share, an increase of $0.12 (twelve cents) per share per quarter. This represents a new annual dividend rate of $1.76 (one dollar and seventy-six cents) per share, or an annual increase of $0.48 (forty-eight cents) per share. The regular quarterly cash dividend is payable October 20, 2020, to stockholders of record on October 6, 2020.

Commenting on the announcement, Joe F. Sanderson, Jr., chairman and chief executive officer of Sanderson Farms, Inc., said, “The Board’s decision today demonstrates confidence in our growth strategy and confirms our unwavering commitment to enhancing shareholder value. Importantly, our strong balance sheet and financial strength have provided an opportunity to increase the quarterly cash dividend and return additional funds to our shareholders. At the same time, we are well positioned to continue to manage our operations in a challenging environment and respond to the opportunities ahead for Sanderson Farms.”

Sanderson Farms, Inc. is engaged in the production, processing, marketing and distribution of fresh, frozen and minimally prepared chicken. Its shares trade on the NASDAQ Global Select Market under the symbol SAFM.

This press release includes forward-looking statements within the meaning of the “safe harbor” provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are based on a number of assumptions about future events and are subject to various risks, uncertainties and other factors that may cause actual results to differ materially from the views, beliefs, projections and estimates expressed in such statements. These risks, uncertainties and other factors include, but are not limited to, those discussed under “Risk Factors” in the Company’s Annual Report on Form 10-K for the fiscal year ended October 31, 2019, and Quarterly Report on Form 10-Q for the quarter ended July 31, 2020, and the following:

(1) Changes in the market price for the Company’s finished products and feed grains, both of which may fluctuate substantially and exhibit cyclical characteristics typically associated with commodity markets.

(2) Changes in economic and business conditions, monetary and fiscal policies or the amount of growth, stagnation or recession in the global or U.S. economies, any of which may affect the value of inventories, the collectability of accounts receivable or the financial integrity of customers, and the ability of the end user or consumer to afford protein.