JCPenney announces share repurchase program & dividend increase
30 Mar '07
2 min read
J. C. Penney Company Inc announced that its Board of Directors has approved a new $400 million common stock repurchase program. The Company expects to complete the repurchase program through open market purchases of shares of its common stock by the end of fiscal 2007.
Shares acquired through this program are expected to essentially offset new shares issued in connection with the exercise of employee stock options. The impact of the new repurchase program was anticipated in the Company's initial guidance for full year 2007 earnings per share from continuing operations provided in conjunction with its fourth quarter earnings release.
In addition, the Company announced that its Board of Directors declared a quarterly dividend on its common stock of $0.20 per share, an increase of 11 percent from the Company's current quarterly dividend. The dividend is payable May 1, 2007, to Company stockholders of record at the close of business on April 10, 2007.
"The Company is pleased to announce our new common stock repurchase program and a dividend increase at the same time that we are accelerating our growth initiatives," said Myron E. (Mike) Ullman, III, chairman and chief executive officer.
"These two programs continue our efforts to enhance shareholder value and come on top of the $750 million share repurchase program completed in 2006, as well as the 44 percent dividend increase instituted last year. At our Analyst Meeting in mid-April, we will outline our new Long-Range Plan strategies, which we are confident will position our Company for growth leadership."
marketing@alchempro.com
