Family Dollar’s annual dividend now exceeds a dollar following a 24% increase on Friday.
The annual payout now totals $1.04 following a decision by the Family Dollar board to elevate the quarterly dividend to 26 cents a share from 21 cents a share. In addition, the board authorized the repurchase of an additional $300 million in stock under an existing program that had only $94 million in authorization remaining.
"Our Board’s decision to maintain our remarkable record of 37 consecutive years of dividend increases shows their unwavering commitment to shareholders, and the increase of 23.8% reflects our confidence in the company’s long-term growth potential," said Howard Levine, chairman and CEO.
Both actions follow a first quarter financial performance for the period ended November 24, 2012 that left investors unimpressed and prompted a major sell off in shares. Sales growth for the operator of 7,500 stores was solid, up 12.7% to $2.4 bill