Fleetwood to pay preferred dividend in cash

RIVERSIDE, Calif., Aug 13 Reuters reported that Fleetwood Enterprises Inc., which makes recreational vehicles and produces manufactured homes, on Tuesday said it will pay the dividend on its 9.5 percent convertible trust preferred securities in cash rather than common stock.

Payment in stock, as previously planned, would have been too dilutive to shareholders, given the current share price, Fleetwood said in a statement.

The company also said it plans to continue to defer interest payments on its 6 percent convertible trust preferred securities.

Shares of Fleetwood closed at $2.57 on Monday on the New York Stock Exchange, just above a 12-month low of $2.38. The stock has traded as high as $17.25 in the past year.