Dillard's Inc. (DDS),in an endeavorto augment shareholders worth and instill confidence in the company's values and prospects, announced a share buyback of approximately $250 million of its Class A Common Stock.
Going forward, Dillard's announced to award the shareholders of record with a 25% hike in dividend as of June 30, 2011. The company will now pay a dividend of 5 cents a share on the Class A and Class B Common Stock of the Company. A hike in dividend portrays Dillard's commitment to its shareholders for raising the dividend at a reasonably steady pace.
Recently, the company posted a record first-quarter 2011 earnings of $1.27 per share, outpacing the Zacks Consensus Estimate of 91 cents per share and prior-year quarter earnings of 69 cents per share.
Dillard's Inc. is a large departmental store chain, featuring fashion apparel and home furnishings. The company currently operates 306 stores and 9 clearance centers across 29 states, all under the Dillard’s brand name.
Moreover, the company benefits from its improvements in inventory management, focusing on more conservative purchasing and efforts to better match the timing of receipts with demand, ultimately resulting in reduced markdowns.
However, the market has become more crowded as department stores, such as Macy's, Inc. (M) and J. C. Penney Company Inc. (JCP), continue to add merchandise that directly competes with Dillard’s upscale offerings.
Dillard's shares maintain a Zacks #1 Rank, which translates into a short-term Strong Buy rating. Our long-term recommendation on the stock remains Outperform.
DILLARDS INC-A (DDS): Free Stock Analysis Report
PENNEY (JC) INC (JCP): Free Stock Analysis Report
Be the first to comment