Foot Locker (FL) Raises Quarterly Dividend 12.7% to $0.31; Approves $1.2B Buyback

February 15, 2017 4:47 PM EST

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Foot Locker (NYSE: FL) declared a quarterly dividend of $0.31 per share, or $1.24 annualized. This is a 12.7% increase from the prior dividend of $0.275.

The dividend will be payable on April 28, 2017, to stockholders of record on April 13, 2017, with an ex-dividend date of April 11, 2017.

The annual yield on the dividend is 1.8 percent.

Second, the Board of Directors approved a new 3-year, $1.2 billion common share repurchase program extending through January 2020, replacing the Company's previous $1 billion program. Through the end of fiscal 2016, the Company had spent $795 million under that program since it was announced two years ago.

Third, the Board of Directors approved a $277 million capital expenditure program for 2017, close to the $284 million of capital that the Company invested in 2016. The Company will continue to spend capital to build on its key strategic initiatives, including opening exciting new retail destinations in key cities around the world; extending its remodel programs to more of its existing store fleet; expanding geographically, particularly in Europe and with its Kids Foot Locker banner globally; building even stronger capabilities in its direct-to-customer segment; and upgrading its technology and supply chain infrastructure.

"We have seen that the capital investments Foot Locker, Inc. has made in recent years have been critical to elevating our financial performance and positioning us at the center of sneaker culture," said Richard Johnson, Chairman and Chief Executive Officer. "With the landscape of retail changing rapidly, our Board of Directors agrees that leading that change in the future requires ongoing investment in our business. At the same time, our Company remains committed to returning significant amounts of cash to shareholders, and the Board's actions to both increase our dividend at a double-digit percentage rate for the seventh straight year and increase our share repurchase authorization by 20 percent is clear evidence of that commitment."

For a dividend history and other dividend-related data on Foot Locker (FL) click here.

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