CHARLOTTE, N.C., May 24 /PRNewswire-FirstCall/ -- The Board of Directors of The Cato Corporation today approved a 10% increase in the Company's dividend to an annualized rate of $.66 per Class A Common and Class B Common share. The dividend is payable quarterly at the rate of $.165 per share with the first payable date of June 25, 2007 to shareholders of record on June 11, 2007. At the closing market price on May 24, 2007, the dividend represents an annualized yield of 3.1%.
"Cato has increased its dividend every year since 1998 and today's increase continues our practice of returning a portion of profits to our shareholders," stated John Cato, Chairman, President and Chief Executive Officer. "Our long-term financial goal of increasing the value of our shareholder's investment in Cato by growing earnings and dividends 10% per year on average remains unchanged."
The Cato Corporation is a leading specialty retailer of value-priced women's fashion apparel operating two divisions, "Cato" and "It's Fashion!" The Company offers exclusive merchandise with fashion and quality comparable to mall specialty stores at low prices, every day. As of May 5, 2007, the Company operated 1,286 stores in 31 states, compared to 1,252 stores in 31 states as of April 29, 2006.
Statements in this press release not historical in nature including, without limitation, statements regarding the Company's expected financial results are considered "forward-looking" within the meaning of The Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on current expectations that are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those contemplated by the forward-looking statements. Such factors include, but are not limited to, the following: general economic conditions; competitive factors and pricing pressures; the Company's ability to predict fashion trends; consumer apparel buying patterns; adverse weather conditions and inventory risks due to shifts in market demand. Additional information concerning these and other important factors can be found in Item 1A. "Risk Factors" of the Company's most recent Annual Report on Form 10-K and any subsequent Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission. The Company does not undertake to publicly update or revise the forward-looking statements even if experience or future changes make it clear that the projected results expressed or implied therein will not be realized. The Company is not responsible for any changes made to this press release by wire or Internet services.
