Wednesday, Family Dollar Stores, Inc. (FDO) reported that the company's board of directors has authorized the company to purchase an additional $400 million of the company's common stock. According to the company, the purchase will be made from time to time based on market conditions.
The Charlotte, North Carolina-based company, which operates a chain of self-service retail discount stores for low to lower-middle income consumers said that the stock repurchase program will be funded with cash from operations. The program does not have an expiration date, and purchases may be made in the open market, in private transactions or transactions structured through investment banking institutions.
At the end of fiscal 2009, the company had authorization to purchase up to an additional $62 million of its common stock. This new authorization is in addition to the company's current share repurchase authorization.
Family Dollar also announced that its board of directors has declared a regular quarterly cash dividend of $0.135 per share on commonstock, payable on January 15, 2010, to shareholders of record at the close of business on Tuesday, December 15, 2009.
The company currently operates more than 6,600 stores in 44 states.
FDO is currently trading on the New York Stock Exchange at $30.53, up $0.64 or 2.14%.
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