Discount retailer, The TJX Companies, Inc.(TJX) reported an increase in earnings on Wednesday, which beat analysts estimates. The company also revealed a plan to increase dividends and buy back shares.
The Framingham, MA based company reported fourth quarter net income of $604.84 million, or 82 cents per share, up 21% from $475.31 million, or 62 cents per share last year. Excluding special items, earnings were 74 cents per share, which beat analysts estimate of 81 cents per share.
Revenue for the quarter was $7.72 billion, up from $6.71 billion last year. Analysts expected to see revenue of $7.67 billion.
The company announced that its board has approved an increase to its quarterly dividend from 11.5 cents to 14.5 cents per share. This dividend will be payable in June 2013.
TJX also said that it plans to buy back $1.3 billion to $1.4 billion worth of shares during the fiscal year ending February 1, 2014. There is currently $925 million left in the previous share buyback program, which will total up to $1.5 billion in total share buy backs.
TJX shares were up 31 cents, or 0.71% during Wednesday morning trading. The stock has increased 20% in the past year.
The Bottom Line
With the increased dividend, shares of The TJX Companies, Inc.(TJX) will have a 1.33% yield, based on Tuesday’s closing price of $43.67.
The TJX Companies, Inc.(TJX) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
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