HanesBrands (NYSE:HBI) is to return money directly to shareholders for the first time in its history as an independent entity. The company will distribute $0.20 per share of its common stock on June 3 to shareholders of record as of May 20.
Since being spun off from Sara Lee in 2006, the company has not paid a dividend until now.
The dividend annualizes to $0.80 per share, which yields 1.8% at HanesBrands' current stock price of $45.12.
The firm quoted its CEO Richard Noll as saying the new payout was "made possible by strong strategic execution, successful debt reduction and cash-flow generation, and margin-improvement prospects."
Fool contributor Eric Volkman has no position in Hanesbrands. The Motley Fool has no position in Hanesbrands. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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