CHARLOTTE, N.C., May 24, 2012 /PRNewswire/ -- The Board of Directors of The Cato Corporation (NYSE: CATO) today approved a 9% increase in the Company's dividend to an annualized rate of $1.00 per Class A Common and Class B Common share. The dividend is payable quarterly at the rate of $.25 per share with the first payable date of June 25, 2012 to shareholders of record on June 11, 2012. At the closing market price on May 23, 2012, the dividend represents an annualized yield of 3.5%.
"One of Cato's longstanding practices has been to return a portion of profits to our shareholders through dividends and to increase that dividend as our earnings increase," stated John Cato, Chairman, President and Chief Executive Officer. "Cato's dividend yield remains one of the highest in the retail industry."
The Cato Corporation is a leading specialty retailer of value-priced fashion apparel and accessories operating three concepts, "Cato", "Versona" and "It's Fashion". The Company's Cato stores offer exclusive merchandise with fashion and quality comparable to mall specialty stores at low prices every day. Versona is a unique fashion destination offering accessories and apparel including jewelry, handbags and shoes at exceptional prices every day. It's Fashion offers fashion with a focus on the latest trendy styles and nationally recognized urban brands for the entire family at low prices every day. Additional information on The Cato Corporation is available at www.catocorp.com.
Statements in this press release not historical in nature including, without limitation, statements regarding the Company's annualized dividend are considered "forward-looking" within the meaning of The Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on current expectations that are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those contemplated by the forward-looking statements. Such factors include, but are not limited to, the following: general economic conditions; competitive factors and pricing pressures; the Company's ability to predict fashion trends; consumer apparel buying patterns; adverse weather conditions and inventory risks due to shifts in market demand. The Company does not undertake to publicly update or revise the forward-looking statements even if experience or future changes make it clear that the projected results expressed or implied therein will not be realized. The Company is not responsible for any changes made to this press release by wire or Internet services.
SOURCE The Cato Corporation