Limited (LTD) Shares Up 4% as Traders Applaud $1/Share Special Dividend, $200M Buyback

Today traders are cheering news from yesterday night that Limited Brands Inc. (NYSE: LTD) plans to payout a special dividend and launch a $200 million share buyback program. Shares are now up more than 4% and last traded at $24.68.

The owner of the Victoria’s Secret and Bath & Body Works chains said that the $1.00 per share special dividend will be paid on April 19 to shareholders of record on April 5. Based on the current number of outstanding shares for the company, the payout will cost Limited roughly $322 million.

The newly-authorized share repurchase program will allow the company to buyback about $169 million in stock, while at the same time purchasing the $31 million in Limited shares from the previous program of $250 million. According to last night's press release, the repurchases will be made at times the company feels appropriate.

Over the past 10 years the company has returned nearly $10 billion to shareholders through dividends and share repurchases.

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