Dec. 3, 2012
/PRNewswire/ -- In anticipation of increased federal tax rates in 2013 and other uncertainties associated with the "fiscal cliff", The Cato Corporation's (NYSE: CATO) Board of Directors has declared a special dividend of
per share as well as an acceleration of the 2013 full year dividend of
Both dividends are payable on
December 28, 2012
to its shareholders of record at the close of business on
, 2012. These dividends are in addition to the Company's regular quarterly
dividend declared on
, resulting in a total dividend of
per share, or approximately
in total, to be paid on
In addition, the Board anticipates increasing the quarterly dividend by
on an annualized basis) in early 2013, a 20% increase over the current dividend. This increase, if approved, would be payable on a quarterly basis next year.
"Given the very unusual circumstances of the fiscal cliff and uncertainty of the federal tax treatment of dividends, paying both a special dividend and our 2013 dividend now is in the best interest of our long-term shareholders," stated
John P.D. Cato
, Chairman, President and Chief Executive Officer. "Cato has long been committed to providing value to its shareholders through an increasing dividend. The board's anticipated dividend increase in 2013 demonstrates that commitment."
"Our balance sheet remains strong," Mr. Cato continued. "Even in this period of financial and political uncertainty, we remain confident in our business and these payments will not affect our ability to fund new store development, invest in infrastructure and technology and opportunistically repurchase stock."