New York Times Co. considers cutting dividend

Bloomberg reports New York Times Co. is considering a dividend cut after reporting "a loss on severance costs and a steeper drop in advertising sales."

After the results were announced, Standard & Poor's cut its debt rating on the compnay to "junk." The rating agency's downgrade has placed additional pressures on the firm. 

The company's dividend, currently at 8.7 percent, pays $25.1 million a year to the Ochs-Sulzberger family, which has a controlling stake in the New York Times Co.

Chief Financial Officer James Follo did not say if the board is considering a dividend cut or if it will move to eliminate the dividend altogether. 

In the third quarter, the company reported a 16 percent decline in ad sales. Ad sales in September alone slid 14 percent.

Shares of New York Times Co. stock are down 39 percent this year.

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