Former Dividend Aristocrat Ross Stores (ROST) will hike its dividend by 8.8 percent to $0.31 per share quarterly in 2022. Last year ROST reinstated its quarterly dividend with a payment of $0.285 per share in Q1 of 2021. In 2020 the off-prce retailer suspended its dividend because of the COVID-19 pandemic. The Dividend Aristocrat had raised its quarterly dividend by 11.8 percent to $0.285 per share earlier in 2020 before the suspension, marking the 26th consecutive year of dividend increases byROST. This record came to an end with Ross suspending the dividend. Later Ross was also kicked out off the Dividend Aristocrats Index after being included only a few months earlier.
The next ROST dividend is payable on March 31, 2022 to stockholders of record as of March 15, 2022. At a stock price of $86 the estimated dividend yield for Ross Stores is 1.4%. ROST will now pay an estimated $441 million in dividends to shareholders annually.
In commenting on the dividend hike (and new $1.9 billion buyback), CEO Barbara Rentler noted, “The increases to our stock repurchase and dividend programs reflect our ongoing commitment to enhancing stockholder value and returns, confidence in our projected future cash flows as well as the strength of our balance sheet.”
Ross Stores, Inc. is an off-price apparel and home fashion chain. The company operates two brands of off-price retail apparel and home fashion stores: Ross Dress for Less and dd’s DISCOUNTS. Ross offers name brand and designer apparel, accessories, footwear, and home fashions for the entire family at savings of 20% to 60% off department and specialty store regular prices every day. Ross' target customers are primarily from middle income households. dd's DISCOUNTS features name brand apparel, accessories, footwear, and home fashions at savings of 20% to 70% off moderate department and discount store regular prices. Ross Stores has locations in the United States, the District of Columbia and Guam.