Dividend Hike for American Eagle Shareholders

by MR Magazine Staff

NEW YORK – American Eagle Outfitters’ board of directors has authorized a one-third increase in the company’s dividend, to an annual rate of $0.40 from $0.30.

Shareholders of record July 2 will be eligible for the enhanced quarterly cash dividend of $0.10 a share on July 13.

“Our decision to significantly increase the dividend signals our continuing confidence in the strong growth prospects and future financial performance of American Eagle,” said Jim O’Donnell, chief executive officer of the Warrendale, Pa.-based teen specialty retailer. “We will continue to seek to enhance shareholder value through dividends and share repurchases, along with strategies to maximize the potential of our brands and pursue new growth concepts.”

The company authorized the repurchase of an additional 23 million shares of its common stock on May 22. It still has more than 4 million shares remaining on its initial buyback plan of 7 million shares through 2009. American Eagle has more than 220 million shares outstanding overall.