Dick's Sporting Goods Resumes Dividend Amid Strong Sales

Dick's Sporting Goods resumed its dividend as sales have strengthened. It suspended the payout in April but never actually skipped it.
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Shares of Dick’s Sporting Goods  (DKS) - Get Report rose after the nation’s largest sporting goods retailer said it’s resuming its dividend program.

Dick’s suspended the payout in April but never actually missed one. 

“In the [fiscal] first quarter of 2020 [ended May 2], following its temporary store closures, the company announced temporary pay reductions for many salaried teammates, furloughs of a significant number of its workforce and the suspension of its dividend program and share repurchases, among other measures, to bolster its cash position and maximize flexibility as part of the company's initial response to Covid-19,” Dick’s said in a statement.

“Now, with strong early sales results as stores have reopened and the expectation to have nearly 100% of its stores reopened to the public by June 30, 2020, the company has restored previously reduced salaries for all teammates, except for certain executives, and has returned substantially all teammates from furlough. “

The Pittsburgh retailer, which operated 726 stores at May 2, reinstated the dividend at 31.25 cents a share, payable June 30 to holders of record June 22. That's the same amount as it paid in March. And that figure was 14% higher than the 27.5 cents it paid out in January.

Dick’s said it also may resume opportunistic share buybacks under its current authorizations.

For the fiscal first quarter, Dick’s reported a net loss of $143.4 million, or $1.71 a share, swinging from profit of $57.5 million, or 61 cents, in the year-earlier quarter.

Dick’s shares at last check stood at $8, up 5.1%. They have gained 18% over the past three months.