Nordstrom (JWN) Declares $4.85 Special Dividend; Approves $1B Buyback
Get Alerts JWN Hot Sheet
Overall Analyst Rating:
NEUTRAL ( Up)
Dividend Yield: 4.3%
Revenue Growth %: +0.3%
Join SI Premium – FREE
Nordstrom (NYSE: JWN) declared a special dividend of $4.85 per share.
The dividend will be payable on October 27, 2015, to stockholders of record on October 12, 2015, with an ex-dividend date of October 7, 2015.
The annual yield on the dividend is 6.8 percent.
Nordstrom, Inc. (NYSE:JWN) today announced the closing of its credit card transaction with TD Bank U.S.A., N.A. (TD), including the sale of its credit card portfolio and the initiation of the long-term agreement under which TD is the exclusive U.S. issuer of Nordstrom-branded Visa and private label consumer credit cards. This transaction supports Nordstrom's strategy to enhance the customer experience while allowing for improvement in capital efficiency.
As previously announced on May 26, 2015, Nordstrom will continue to perform all customer-facing account servicing functions, maintaining the customer-focused integration between its credit and retail operations. The Company will also continue to fund and manage the Nordstrom Rewards loyalty program, Nordstrom debit cards and Nordstrom employee accounts. This transaction is designed to have virtually no service impact on Nordstrom cardholders, customers and employees.
"We look forward to our collaboration with TD, a premier financial institution that shares our customer focus. Our mutual commitment to having Nordstrom employees serve our customers directly is paramount to this partnership," said Blake Nordstrom, co-president, Nordstrom, Inc. "We are also pleased to be able to return capital directly to our shareholders using our balanced approach to capital allocation."
USE OF PROCEEDS
The Company sold its credit card portfolio to TD for $2.2 billion, representing the gross value of the outstanding receivables. In conjunction with the transaction, the Company prepaid $325 million of secured debt due October 2016 to provide the receivables free and clear.
The Company intends to deploy net proceeds of $1.8 billion, after $325 million in debt reduction and transaction costs between $35 million and $45 million, directly to shareholders through dividend and share repurchase. In connection with the closing, its board of directors authorized a special cash dividend and an additional $1 billion share repurchase program:
Nordstrom will provide additional details on the overall financial impact of the transaction, including an update to its fiscal 2015 outlook, in its upcoming earnings release on November 12, 2015.
For a dividend history and other dividend-related data on Nordstrom (JWN) click here.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Alphabet (GOOGL) soars 16% on Q1 results beat, first-ever dividend
- Dorian LPG (LPG) Declares $1.00 Special Dividend; 2.4% Yield
- Sysco Corp. (SYY) Raises Quarterly Dividend 2% to $0.51; 2.6% Yield
Create E-mail Alert Related Categories
Corporate News, Dividends, Hot Buybacks, Hot Corp. News, Hot Dividends, Special Dividends, Stock BuybacksRelated Entities
Dividend, EarningsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!