), a leading fashion apparel, cosmetics and home furnishings
retailer, recently declared that its board of directors has
approved a new share repurchase program. The new program reflects
the company's sound financial position and well-defined future
The new open-ended share repurchase authorization permits
Dillard's to buy back a maximum of $250 million of its Class A
shares. Under the authorization, the company can repurchase its
shares either from the open market or through privately
The new authorization came after the company completed its
previous $250 million share buyback program approved in Feb 2012.
As of Feb 2, 2013, Dillard's had authorization worth nearly $92.0
million remaining under its share repurchase program.
Dillard's has always been committed to creating value for its
shareholders by returning capital in the form of dividends and
share repurchase program. On Feb 28, the company declared a
quarterly dividend of 5 cents per share on its common shares,
payable on May 6, 2013 to stockholders of record as of Mar 28,
2013. Apart from this, in Dec 2012, the company paid a special
cash dividend of $5.0 per share to the shareholders' of record
date on Dec 7, 2012.
Dillard's strong balance sheet and cash flow provide financial
flexibility in shareholder-friendly moves, and store and online
business expansions. During fiscal 2012, it shelled out $185.5
million on share repurchases and $252.3 million on cash
dividends. The company generated operating cash flow of $522.7
million, while cash and cash equivalents stood at $124.1 million
at the end of the fiscal year.
Other companies that recently announced new share repurchase
Discover Financial Services
Mondelez International Inc
We believe that dividend payments and share repurchases not
only enhance shareholder's return, but also raise the market
value of the stock. Through dividend payments, companies bolster
investors' confidence, persuading them to either buy or hold the
scrip instead of selling. Looking ahead, Dillard's remains
confident of its growth potential, suggesting enhanced value for
shareholders via dividend payout as well as share buybacks.
DILLARDS INC-A (DDS): Free Stock Analysis
DISCOVER FIN SV (DFS): Free Stock Analysis
NORDSTROM INC (JWN): Free Stock Analysis
MONDELEZ INTL (MDLZ): Free Stock Analysis
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