Whole Foods Brings Back Dividend
NEW YORK (
) --
Whole Foods Market
(WFMI)
said Wednesday it's reinstated its dividend after more than two years, saying its board has approved a quarterly cash payout of 10 cents a share, payable on Jan. 20 to shareholders of record on Jan. 10.
"The Company's favorable financial position and long-term outlook give us the confidence to reinstate our quarterly cash dividend," said John Elstrott, Whole Foods' chairman in a statement. "As a company with significant future growth opportunities, we are fortunate to have sufficient cash on hand and predictable cash flow allowing us to pay off our debt, accelerate our growth, and also return cash to our shareholders."
The stock closed Wednesday at $48.90, up 19 cents. Year-to-date, the shares, which hit a 52-week high of $49.49 on Dec. 7, have risen more than 77%. The Austin, Texas-based specialty supermarket operator has topped Wall Street's profit expectations for eight straight quarters, most recently posting a profit of $57.5 million, or 33 cents a share, beating the consensus estimate by 17%.
Whole Foods said its board plans to continue to pay a quarterly dividend on an ongoing basis, subject to capital availability and other factors. The company noted in its press release that it generated free cash flow of $328.5 million in fiscal 2010, and said its total cash and cash equivalents, restricted cash, and investments were $644.7 million as of Sept. 26, while total debt was $508.7 million. The company suspended its dividend in August 2008.
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Written by Michael Baron in New York.
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