Gap Approves $1 Billion Share Buyback, Raises Annual Dividend

Gap Inc. said its board has approved a new $1 billion share buyback program, which follows its previous $500 million program announced in October of 2014. The clothes retailer said it is raising its annual dividend to 92 cents a share from 88 cents. The company will pay a 23 cents dividend for the first quarter on April 29 to shareholders of record as of close of business on April 8. Shares were slightly lower in after-hours trade but have gained 2.6% in the last three months, while the S&P 500 has gained 2.5%.