The Dynamic Dividend

HSN Initiates Quarterly Dividend, Yields 1.4%

HSN, Inc. (HSNI) announced a capital return plan for shareholders this morning, which includes the initiation of a quarterly dividend.

The multi-channel retailer, which controls HSN (formerly Home Shopping Network) operations and a stable of home and apparel brands under its Cornerstone arm, declared a quarterly dividend of $0.125 per share. Analysts currently expect the company to earn $2.35 per share next year, giving HSN a very manageable 21% forward payout ratio to begin its dividend-paying era.

As part of the capital return plan, the company also announced the authorization of its first buyback program, which will have an initial balance of 10 million shares.

Shares of HSN closed Tuesday’s session trading at $35.15, where they now feature a shiny new 1.42% dividend yield. The stock is up 15% so far in 2011, and 17% over the last year.