HanesBrands raised its quarterly cash dividend by 33 percent and approved a 4-for-1 stock split to be executed in the form of a stock dividend issued to stockholders.
“Hanes is generating significant value for shareholders through earnings growth, a strong balance sheet and significant cash flow,” Hanes Chairman and Chief Executive Officer Richard A. Noll said. “The board has confidence in the company’s successful business model, and the decision to significantly raise our quarterly cash dividend and split the stock is a reflection of the company’s continued strong financial performance and stock price appreciation.”
The board is raising the regular quarterly cash dividend to $0.40 per share on a pre-split basis, up from $0.30 per share. It is the second cash dividend increase in the two years since the company instituted a quarterly cash dividend. A year ago, the board increased the quarterly cash dividend by 50 percent.
The quarterly cash dividend and the stock dividend will both be payable March 3, 2015, to stockholders of record Feb. 9, 2015. In addition to the quarterly cash dividend on a pre-split basis, stockholders will receive three additional shares of common stock for each share of common stock they own.
The New York Stock Exchange is expected to begin reporting the adjusted number of shares outstanding and the split-adjusted per-share stock price on March 4, 2015. Upon completion of the split, the number of weighted average shares outstanding of Hanes common stock will increase from approximately 100 million to approximately 400 million.
In connection with the stock dividend and split, the board approved an article of amendment to the company’s charter to increase the number of authorized shares of common stock from 500 million to 2 billion.
HanesBrands brands include Hanes, Champion, Playtex, DIM, Bali, Maidenform, Flexees, JMS/Just My Size, Wonderbra, Nür Die, Lovable and Gear for Sports.
