Increase in Shareholder Distributions
The Company also announced today its plan to repurchase approximately $1.3 billion to $1.4 billion of TJX stock during the fiscal year ending February 1, 2014. With $925 million remaining at Fiscal 2013 year end under the Company’s existing stock repurchase program, the Company’s Board of Directors approved a new stock repurchase program that authorizes the repurchase of up to an additional $1.5 billion of TJX common stock from time to time. The new authorization represents approximately 5% of the Company’s outstanding shares at current prices. The new stock repurchase program marks the 14 th program approved by the Board since 1997. Over this period, the Company has spent approximately $11.3 billion on the repurchase of TJX stock. In Fiscal 2013, the Company spent a total of $1.3 billion to repurchase TJX stock, retiring 30.6 million shares. During the fourth quarter, the Company spent a total of $350 million to repurchase TJX stock, retiring 8.1 million shares. Under the Company’s repurchase plans, share repurchases may be made from time to time in market or private transactions and may include derivative transactions. The repurchase program announced today has no time limit and may be suspended or discontinued at any time.
The Company also intends to increase the regular quarterly dividend on its common stock to be declared in April 2013 and payable in June 2013 to $.145 per share, subject to the approval of the Company’s Board of Directors. This increase would represent a 26% increase in the current per share dividend and mark the 17 th consecutive year that the Company has raised the dividend. Over this period of time, the Company’s dividend has grown at a compound annual rate of 23%.
Carol Meyrowitz commented, “Our business continues to generate enormous amounts of excess cash and deliver superior financial returns for shareholders. In Fiscal 2014, we plan to continue to make investments to support our growth while returning excess cash to shareholders. Our capital spending plan includes investments in our supply chain and infrastructure, new stores, store remodels and e-commerce initiatives. Simultaneously, we plan to continue our large share buyback program, with $1.3 billion to $1.4 billion of repurchases planned for Fiscal 2014, and to significantly increase our regular quarterly dividend. All of this underscores our confidence in our ability to continue to deliver significant increases in sales, earnings, and cash flow, and generate superior financial returns.”