The Dynamic Dividend

Dick’s Begins Returning Cash to Shareholders

Dick’s Sporting Goods (DKS) declared an annual dividend of $0.50 per share this morning, marking the first time the company has elected to return cash to its shareholders. The sporting goods retailer also said it plans to pay a quarterly dividend beginning in 2012.

Shares of DKS closed Monday’s session trading at $39.58. The press release did not reveal a quarterly dividend rate, so it’s impossible to pin a yield on the stock at this point. But if the dividend declared today is an indication that the company plans to pay $0.50 per share on an annual basis ($0.125 per share quarterly), buyers at the current price will be sitting on a 1.26% yield.