Ross Stores Hikes Dividend 21%

Good news this morning from Ross Stores ($ROST). The company reported blowout sales for January. Thanks to the rush of business, the company sees Q4 earnings coming in at $1.06 to $1.07 per share, and that’s $3.52 to $3.53 per share for the entire year. (Note that like a lot of retailers, Ross ends their fiscal year at the end of January.) The earnings report should be out in mid-March.

Best of all, Ross is raising the quarterly dividend from 14 cents to 17 cents per share. That’s a 21% hike. Ross pays out a very small amount of their profits as dividends to shareholders (about 20%). Based on yesterday’s close, Ross yields 1.15%. That’s obviously not a very high yield but the dividend increase and strong sales news is a good omen for Ross Stores.

Posted by on February 7th, 2013 at 9:57 am

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