NEW YORK (AP) -- Specialty retailer Limited Brands Inc. said Monday that its board approved a special dividend of $3 per share to be paid ahead of possible changes in tax rates.
The Columbus, Ohio, company will pay the dividend Dec. 26 to shareholders of record on Dec. 20.
Based on about 288.4 million shares outstanding, the total payout will be about $865.2 million.
Since 2003 investors have paid a maximum 15 percent on dividend income. That historically low rate will expire in January unless Congress and President Barack Obama reach a compromise on taxes and government spending. 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.
Limited Brands is the parent of chains including Victoria's Secret and Bath & Body Works.
Shares of the company closed at $50.66, down 52 cents. The stock rose 83 cents, to $51.49, in after-hours trading.