Tapestry, Inc. (TPR), the owner of luxury accessories and lifestyle brands, will reinstate its quarterly dividend at a lowered rate of 25 cents per share. The company formerly known as Coach suspended its quarterly dividend in 2020 because of the COVID-19 pandemic. Tapestry had paid a dividend since 2009. The last dividend hike dates back to 2013 when the payout was increased by 12.5 percent.
In its press release the company announces the dividend and mentions that it intends to hike the dividend. "Tapestry declared a quarterly cash dividend of $0.25 per common share payable on September 27, 2021 to shareholders of record as of the close of business on September 7, 2021, with an anticipated annual dividend rate of $1.00 per share. Over time, the Company intends to increase its dividend at a faster rate than earnings growth. Further, the Company intends to repurchase approximately $500 million worth of stock in Fiscal 2022 under its current authorization. Taken together, Tapestry plans to deploy over $750 million to shareholders in Fiscal 2022 through dividends and share repurchases, reflecting a balanced approach to shareholder returns. The Company and its Board of Directors will evaluate its dividend and share repurchase programs on a regular basis with a target of increasing the overall level of returns upon more visibility into a normalization in the external environment."
The dividend yield for Tapestry is 2.5% based on the annual payment of $1.00 per share and a stock price of $40.17.
Tapestry, Inc. is a New York-based house of modern luxury lifestyle brands. The company’s portfolio includes Coach, Kate Spade and Stuart Weitzman. Effective October 31, 2017, the company changed its name from Coach, Inc. to Tapestry, Inc. The company went public in October 2000 under the Coach, Inc. name. The company was originally founded in 1941.