PITTSBURGH (AP) -- Dick's Sporting Goods Inc. said Wednesday that its board declared a special dividend of $2 per share, a move many companies are taking ahead of potential tax increases in 2013.
The Pittsburgh-based retailer said it will fund the payout of about $254 million with cash on hand and said it has ample capacity to grow its business even after paying the dividend.
The special dividend is payable Dec. 28 to shareholders of record Dec. 17. Dick's will also pay its regular quarterly dividend of 12.5 cents per share on Dec. 28 to shareholders of record Nov. 30.
The company also announced Chief Financial Officer Tim Kullman plans to retire next year, and a search has begun for a successor.
Since 2003 investors have paid a maximum 15 percent on dividend income. But that historically low rate will expire in January unless there's a budget deal in Washington. As it stands, dividends will be taxed as ordinary income in 2013, the same as wages, so rates will go up depending on which income bracket a taxpayer is in. For the highest earners, the dividend rate would jump to 43.4 percent.
Shares of Dick's closed at $51, down 91 cents. The stock rose $1.21, or 2.4 percent in after-hours trading.