Macy’s raises quarterly dividend by 5%

Published 28/02/2025, 19:06
Macy’s raises quarterly dividend by 5%

NEW YORK - Macy’s, Inc. (NYSE:M), a prominent retailer known for its department stores across the United States, has announced a 5% increase in its regular quarterly dividend. The board of directors declared a dividend of 18.24 cents per share on the company’s common stock, which is scheduled to be paid on April 1, 2025, to shareholders who are on record as of March 14, 2025. According to InvestingPro data, Macy’s currently offers a substantial 4.94% dividend yield and has maintained dividend payments for 22 consecutive years, demonstrating its commitment to shareholder returns despite trading near its 52-week low of $13.66.

This decision by Macy’s board reflects a positive step for the company’s financial distributions to its shareholders. The increased dividend marks a continued commitment to returning value to investors, following a long-standing tradition of Macy’s, Inc. in providing regular quarterly dividends. InvestingPro analysis indicates the company appears undervalued based on its Fair Value assessment, with analysts maintaining positive earnings forecasts for the year ahead.

Macy’s, Inc. operates under several nameplates, including Macy’s, Bloomingdale’s, and Bluemercury. The company has established a significant presence both through its brick-and-mortar stores and its digital platforms, aiming to offer a seamless shopping experience to customers nationwide.

The increase in the dividend payout can be seen as a sign of the company’s financial health and its confidence in maintaining a stable financial performance. Shareholders looking to benefit from the increased dividend must be on the company’s books before the close of business on March 14, 2025.

The information in this article is based on a press release statement from Macy’s, Inc. and provides shareholders and potential investors with the latest financial developments regarding the company’s dividend policy.

In other recent news, Macy’s has announced its fiscal fourth quarter 2024 performance update, revealing a mixed picture of growth and challenges. The company’s go-forward business, including Macy’s First 50 locations, Bloomingdale’s, and Bluemercury, reported positive comparable sales growth, while non-First 50 locations experienced negative comparable sales. Despite some underperformance, Macy’s digital channel continued to see growth, and the company maintained its adjusted diluted earnings per share forecast for the fourth quarter within the previously stated range of $1.40 to $1.65. However, net sales are expected to be at or slightly below the low end of the projected $7.8 billion to $8.0 billion range.

Additionally, Macy’s has expanded its partnership with NBCUniversal, securing a 10-year rights agreement to air its Thanksgiving Day Parade and 4th of July Fireworks on NBC, Peacock, and Telemundo. This deal aims to enhance Macy’s holiday programming and content presence. In corporate governance developments, Macy’s appointed Robert Chavez to its Board of Directors, bringing over four decades of retail industry experience, particularly in luxury goods. Chavez’s appointment is part of Macy’s commitment to board director refreshment.

Moreover, CFRA has raised Macy’s stock price target from $13.00 to $15.00, maintaining a Hold rating, while lowering fiscal year 2025 and 2026 earnings per share estimates. Macy’s reported a normalized third-quarter EPS of $0.04, matching consensus estimates, on revenues of $4.9 billion, slightly above expectations. Lastly, Macy’s reported a notable second-quarter 2024 earnings per share beat, posting an adjusted EPS of $0.53, surpassing the forecast of -$0.01, with revenue of $4.74 billion, aligning with expectations.

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