Dillard’s, Inc. Announces New $500 Million Share Repurchase Program and Declares $0.15 Cash Dividend

Rhea-AI Summary

Dillard’s, Inc. (DDS) announced a new share repurchase program, allowing the buyback of up to $500 million of its Class A Common Stock. This program is open-ended and includes repurchases in the open market or through privately negotiated transactions. As of May 1, 2021, $114.3 million remains from the previous repurchase plan initiated in March 2018. Additionally, the Board declared a cash dividend of $0.15 per share, payable August 2, 2021, marking the Company's 209th consecutive quarterly dividend since its public listing in 1969.

Positive

• New share repurchase program of $500 million to enhance shareholder value.
• 209 consecutive quarterly dividends demonstrate financial stability.

Negative

• None.

Dillard’s, Inc. (DDS-NYSE) (the “Company” or “Dillard’s”) announced that the Board of Directors has approved a new share repurchase program authorizing the Company to repurchase up to $500 million of its Class A Common Stock. The new open-ended authorization permits the Company to repurchase its Class A Common Stock in the open market, pursuant to preset trading plans meeting the requirements of Rule 10b5-1 under the Securities Exchange Act of 1934 or through privately negotiated transactions. At May 1, 2021, authorization of $114.3 million remained under the Company’s March 2018 share repurchase plan.

The Board of Directors also declared a cash dividend of $0.15 per share on the Class A and Class B Common Stock of the Company payable August 2, 2021 to shareholders of record as of June 30, 2021. This marks the Company’s 209^th consecutive quarterly dividend since becoming a public company in 1969.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210515005013/en/

FAQ

What is the purpose of Dillard's new share repurchase program?

The program aims to enhance shareholder value by allowing the buyback of up to $500 million of Class A Common Stock.

When is the cash dividend from Dillard's payable?

The cash dividend of $0.15 per share is payable on August 2, 2021, to shareholders of record as of June 30, 2021.

How much authorization remains under Dillard's previous share repurchase plan?

As of May 1, 2021, there is $114.3 million remaining under the March 2018 share repurchase plan.

How does Dillard's share repurchase program affect its stock price?

The share repurchase program is expected to support and potentially increase the stock price through reduced share supply.