Cato Corp's BOD approves three-for-two stock split
27 May '05
2 min read
leading specialty women's apparel retailer, the cato corporation's board of directors has approved a three-for-two stock split of the company's class a and class b common stock.
the stock split will entitle all shareholders of record at the close of business on june 13, 2005 to receive one additional share of class a common stock for every two shares of class a common stock held on that date and one additional share of class b common stock for every two shares of class b common stock held on that date.
the company expects the shares issued as a result of the split to be distributed on june 27, 2005. fractional shares will be paid in cash based upon the closing price of the class a common stock on june 13, 2005. as a result of the stock split, the number of outstanding shares of common stock will increase to approximately 31.3 million from approximately 20.9 million.
the board of directors also approved an 11% increase in the company's dividend to an annualized rate $.78 per share on a pre-split basis. on a post-split basis, the annualized rate is $.52 per share. the dividend will be paid on a post-split basis at a quarterly rate of $.13 per share with the first payable date of june 27, 2005 to shareholders of record of class a and class b common stock on june 13, 2005. at the closing market price on may 25, 2005, the dividend represents an annualized yield of 2.9%.
"we are pleased to announce this stock split and an increased dividend whichcontinue our practice of delivering greater value to our shareholders," stated john cato, chairman, president and chief executive officer. "we believe the split will result in additional share liquidity and make our stock more attractive to a broader range of investors. the increased dividend represents a payout of 46% of 2004 earnings and continues to be paid from operating cashflow. we remain committed to our long-term goal of increasing earnings and dividends at an average annual rate of 10%."
marketing@alchempro.com
