Cato Announces Special Dividend of $1/Share
In anticipation of increased federal tax rates in 2013 and other uncertainties associated with the "fiscal cliff", The Cato Corporation's (NYSE: CATO) Board of Directors has declared a special dividend of $1.00 per share as well as an acceleration of the 2013 full year dividend of $1.00 per share.
Both dividends are payable on December 28, 2012 to its shareholders of record at the close of business on December 14, 2012. These dividends are in addition to the Company's regular quarterly $.25 dividend declared on November 20, resulting in a total dividend of $2.25 per share, or approximately $66 million in total, to be paid on December 28.
In addition, the Board anticipates increasing the quarterly dividend by $.05 (or $.20 on an annualized basis) in early 2013, a 20% increase over the current dividend. This increase, if approved, would be payable on a quarterly basis next year.
"Given the very unusual circumstances of the fiscal cliff and uncertainty of the federal tax treatment of dividends, paying both a special dividend and our 2013 dividend now is in the best interest of our long-term shareholders," stated John P.D. Cato, Chairman, President and Chief Executive Officer. "Cato