Dick's Sporting Goods to pay special dividend ahead of fical cliff
New York -- Dick’s Sporting goods will pay $2 special dividend before year end in a move to help investors avoid what are presumed to be higher dividend tax rates in 2013 and beyond.
The dividend payment will be made from cash on hand, according to the company.
"This additional return of approximately $254 million in cash to our shareholders demonstrates the strength of our balance sheet, the health of our business and a commitment to efficiently deploy our strong cash generation," said Dick’s chairman and CEO Ed Stack. "We also remain firmly committed to investing in the profitable growth of our business and we will have ample capacity to do so even after payment of this dividend."
The hefty dividend payout was announced in conjunction with news that CFO Tim Kullman plans to retire in April 2013. The company has begun a search for his replacement, but said Kullman has agreed to remain with the company until such time as a successor is located.
"Tim has been an invaluable member of our management team over the past five years. He has been instrumental in designing a financial framework rooted in discipline and supporting our mission to relentlessly improve everything we do. Tim's contributions will be felt well into the future," Stack said.