LITTLE ROCK — The Dillard’s Inc. Board of Directors has declared a one-time cash dividend of $5 per share in addition to a quarterly cash dividend of 5-cents per share.
“This special, one-time dividend of $5 per share reflects our strong financial position and underscores our confidence in Dillard’s. We are pleased to return value to our shareholders in this manner,” CEO William Dillard II said in an announcement posted on the company’s website Monday.
Both dividends are payable on the Class A and Class B Common Stock of the company on Dec. 21 to shareholders of record as of Dec. 7.
Dillard’s closed at $87.72 Tuesday, up $1.88 or 2.19 percent on the New York Stock Exchange.
The announcement did not explain why the board declared one-time $5 per share dividend. Julie Bull, director of investor relations for Dillards, said only that the company was “letting the press release speak for itself.”
Earlier this month, Wal-Mart announced that it would pay its quarterly dividend on Dec. 27 instead of Jan. 2, as was scheduled.
The New York Times reported that the timing change would allow the Walton family, which founded Wal-Mart, along with other Wal-Mart shareholders to record the income this year when the federal tax rate on dividends tops out at 15 percent. Shareholders potentially could face a nearly 40 percent rise in taxes on dividends if the Obama administration and Republicans fail to reach a budget agreement in the coming weeks and Bush-era tax cuts expire at the end of the year, according to the newspaper.