High-end retailer Nordstrom increase to its quarterly dividend by 25%
High-end retailer Nordstrom (NYSE: JWN) is known for its fancy stores that feature scores of pricey apparel, fragrances and footwear more than it is for being a stock that income investors flock to. Nordstrom may be trying to change that with the announcement that will boost its quarterly dividend by 25% to 20 cents a share from 16 cents. The new dividend is payable on June 15th to shareholders of record on May 28th.
Last week, Seattle-based Nordstrom said its first-quarter profit jumped 43%, but its full-year outlook disappointed investors. When factoring in the new payout, Nordstrom shares would yield about 2.1%, a fair amount above the 1.6% the shares currently yield. Analysts expect Nordstrom to earn $2.62 a share this year and $3.05 a share next year, so dividend coverage appears sufficient.
This is Nordstrom's first dividend hike 2007, but the payout has almost doubled since 2006.