The Board of Directors of The Cato Corporation has approved a 15 percent increase in the company's dividend to an annualized rate of $.60 per Class A Common and Class B Common share.
The dividend is payable quarterly at the rate of $.15 per share with the first payable date of June 26th 2006 to shareholders of record on June 12th 2006. At the closing market price on May 24th 2006, the dividend represents an annualized yield of 2.7 percent.
"The increase in the dividend continues our practice of returning a portion of profits to our shareholders," stated John Cato, Chairman, President and CEO.
"The increased dividend continues to be funded by operating cash flow. We remain committed to our long-term goal of increasing earnings and dividends at an annual rate of 10 percent," Cato said.
The Cato Corporation is a leading specialty retailer of value-priced women's fashion apparel operating two divisions, 'Cato' and 'It's Fashion!'. It offers exclusive merchandise with fashion and quality comparable to mall specialty stores at low prices, every day. It operates 1,252 stores in 31 states, compared to 1,188 stores in 31 states as of April 30th 2005.
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