Carter's reinstates dividend
Carter’s Inc. (CRI) will reinstate its quarterly dividend with a payment of 40 cents per share. The company suspended its quarterly dividend in 2020 because of COVID-19. Earlier that year the company raised its quarterly dividend by 20.0 percent to $0.60 per share. Carter's had raised its dividend by double digits every year for 7 years prior to this dividend cut announced on May 6, 2020.
The next CRI dividend of $0.40 per share is payable on May 28, 2021, to shareholders of record at the close of business on May 12, 2021. The ex-dividend date for this next dividend by Carter's is May 11, 2021. A new estimated annual dividend rate of $1.60 per share will yield 1.5% at a stock price of $108.79.
“Given our strong start to the year, we have raised our sales and earnings forecasts for 2021. We have also amended our credit facility to enable the resumption of capital distributions, which were temporarily suspended in the early days of the pandemic. Accordingly, our Board of Directors has declared a dividend payable to shareholders commencing in the second quarter," said Michael D. Casey, Chairman and Chief Executive Officer.
As previously announced, on April 21, 2021, the company further amended its secured revolving credit agreement to permit the company, subject to certain restrictions, to pay cash dividends and repurchase common stock in aggregate amounts up to $250 million through the date the company delivers its financial statements and associated certificates relating to the third fiscal quarter of 2021. Thereafter, provisions of the company's secured revolving credit facility largely revert to their pre-pandemic terms.
Carter's, Inc. is a marketer of apparel and related products for babies and young children. Its brands include Carter's, OshKosh B'gosh, Skip Hop, Simple Joys, Just One You, Genuine Kids. Child of Mine and Precious First. The company operates its own stores in the United States and Canada in addition to its international wholesale, licensing and online channels. Its brands are sold in department stores, national chains, and specialty retailers domestically and internationally. Carter’s, Inc. has a history dating back to 1865.
