Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

Cato Corporation sets quarterly dividend at $0.17 a share

EditorAhmed Abdulazez Abdulkadir
Published 25/05/2024, 02:14 am
CATO
-

CHARLOTTE, N.C. - The Cato Corporation (NYSE: CATO), a specialty retailer of value-priced fashion, declared a quarterly dividend of $0.17 per share, payable on June 24, 2024, to shareholders of record as of June 10, 2024. The annualized dividend yield based on the closing market price on May 23, 2024, stands at 11.7%.

The retailer, which operates Cato, Versona, and It's Fashion brands, has positioned itself as a provider of fashion apparel and accessories comparable to mall specialty stores but at everyday low prices. Cato Corporation has also emphasized its online presence, offering exclusive merchandise on its website catofashions.com, alongside Versona's selection at shopversona.com.

The announcement comes amidst a backdrop of economic factors that may influence consumer spending, such as interest rates, inflation, and other discretionary spending drivers. The company's forward-looking statements in the press release acknowledge the inherent risks and uncertainties that could impact actual results, citing variables like consumer confidence, political and public health conditions, and competitive pressures.

InvestingPro Insights

The recent dividend declaration by The Cato Corporation (NYSE: CATO) underscores its commitment to returning value to shareholders, with a noteworthy annualized dividend yield of 11.7%. This aligns with an InvestingPro Tip highlighting that Cato pays a significant dividend to shareholders and has maintained these payments for 33 consecutive years. The company's resilience in sustaining dividend payouts is indicative of its financial strategies aimed at shareholder returns.

Despite the challenging retail environment, Cato has demonstrated a significant return over the past week, with a price total return of 8.85%, and an even stronger performance over the last month, at 18.44%. These metrics, available through InvestingPro, reveal a short-term upward trend in the company's stock performance.

InvestingPro Data provides additional context to the company's market position, showing a market capitalization of $112.38M and a price to book ratio of 0.58 as of the last twelve months ending Q4 2024. While the P/E ratio stands at -6.25, indicating challenges in profitability, the company's low revenue valuation multiple suggests that the stock may be undervalued relative to its revenue generation.

For readers interested in a deeper analysis, there are more InvestingPro Tips available, which further explore the company's financial health and market potential. For instance, Cato operates with a moderate level of debt, and its valuation implies a poor free cash flow yield. To access these insights and more, readers can visit InvestingPro. Plus, by using the coupon code PRONEWS24, readers can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.