Bassett Furniture Industries Inc.’s board of directors has declared a special dividend of 50 cents per share of common stock outstanding payable on Jan. 3, 2012 to holders of record on Dec. 23, 2011.

Here’s a news release from Bassett Furniture:

Bassett Furniture Industries, Inc. (Nasdaq:BSET), today announced that its Board of Directors has declared a special dividend of $0.50 per share of common stock outstanding payable on January 3, 2012 to holders of record on December 23, 2011.

Earlier this year, after the sale of its interest in the International Home Furnishings Center in High Point, N. C., the Company reinstated its regular quarterly dividend, returning to shareholders $0.03 per share on both June 1, 2011 and September 1, 2011. Additionally, Bassett increased the regular dividend for the next payment to $0.035 per share, which will be made on December 1, 2011 to holders of record on November 15, 2011.

“Given the uncertainty in overall economic conditions and an adverse credit climate, we believe it is prudent to be conservative with our cash position,” said Robert H. Spilman, Jr. CEO and President.

“However, as the Company reviewed and updated its plans for the future while weighing the Company’s improved balance sheet against economic and market uncertainties, the Company and Board of Directors felt that payment of a special dividend would be appropriate at this time and would be welcomed by a significant segment of its long-term shareholders.”