) recently increased its quarterly dividend by 20%, bringing the
annualized payout to $1.32 per share with a healthy dividend
yield of 3.5% based on yesterday's closing price of $37.35.
A dividend hike primarily reflects GameStop's sound financial
position and healthy cash flow generating capabilities. The
company remains committed to enhance shareholders' value. Since
2010, this video game retailer's share buybacks, debt repayments
and dividend payout have aggregated over $2.1 billion.
The quarterly dividend, after the hike, will come to 33 cents
a share, up from the prior payment of 27.5 cents. The enhanced
quarterly dividend will be paid on Mar 25, 2014, to shareholders
of record as on Mar 17, 2014.
In Feb 2013, this Zacks Rank #3 stock (Hold) last increased
its quarterly dividend by 10% to 27.5 cents. Other companies that
recently increased quarterly dividend include
Family Dollar Stores Inc.
). The companies raised their dividends by 6.1% to 43.25 cents
and 19.2% to 31 cents, respectively. Another company,
McGraw Hill Financial, Inc.
) recently hiked its dividend by 7.1% to 30 cents.
Dividend hikes not only enhance shareholder's return but raise
the market value of the stock. Through this strategy, the
companies bolster investor confidence in the stock, thereby
persuading them to either buy or hold the scrip instead of
Earlier, this Grapevine, Texas based company reported holiday
sales results. GameStop's global sales during the nine-week
holiday period ended Jan 4, 2014 jumped 9.3%, while
comparable-store sales rose 10.2%. New hardware sales surged
99.8%, whereas pre-owned category sales jumped 7% during the
However, sluggish sales of Xbox 360 and PlayStation 3 software
resulted in a 22.5% drop in new software category sales.
Consequently, the company lowered its earnings outlook.
Management now anticipates fourth-quarter earnings between
$1.85 and $1.95 per share and fiscal year 2013 earnings in the
band of $2.96 to $3.06 per share. Earlier, management had
forecasted fourth-quarter earnings in the range of $1.97 to $2.14
and fiscal year 2013 earnings between $3.08 and $3.25 per share.
The current Zacks Consensus Estimates for the fourth quarter and
fiscal 2013 are $1.92 and $3.02, respectively.
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