JC Penney (NYSE: JCP) announced a new $400 million stock repurchase program that it expects to complete in fiscal 2007. In addition, the company raised its quarterly dividend to $0.20 effective with the April 10 declaration.
PAYOUT YIELD ANALYSIS
With approximately 232 million shares outstanding, the new repurchase program will yield $1.72 per share. Combined with the new annualized dividend of $0.80, we project the Total Payout to be $2.52 per share over the next 4 quarters. At $84 per share, the Total Payout Yield is projected to be 3.0%.
- Payout Yield Staff