Late on Wednesday, athletic apparel retailer Foot Locker, Inc. (FL) announced a few updated policies that should benefit shareholders; the company is increasing its quarterly dividend and extending its share buyback plan.
The New York-based company said its quarterly dividend will now be 20 cents per share, up 11% from the previous payout of 18 cents per share each quarter. This new dividend payout equates to an annualized dividend payout of 80 cents per share. The dividend will be payable on May 3 with an ex-dividend date of April 17.
Also, Foot Locker’s Board of Directors announced a new extension to its share buyback plan. The new initiative is a 3-year, $600 million share repurchase program that will extend through January 2016. The new plan replaces the company’s previous $400 million share buyback plan.
In addition to these plans to increase shareholder wealth, FL said that it is planning to increase its capital expenditures in 2013, now expecting to spend $220 million in the year versus 2012′s $163 million spent on capital expenditures. Overall, Foot Locker states that these expenditures will be used to invest in new growth opportunities, expansion in Europe, and improved customer service technologies.
Foot Locker shares were up slightly during pre-market trading on Thursday. The stock is up about +22% over the past twelve months.
The Bottom Line
Shares of Foot Locker (FL) have a dividend yield of 2.33% based on last night’s closing price of $34.35 and the company’s updated annualized dividend payout of 80 cents per share.
Foot Locker, Inc. (FL) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.