Nordstrom To Pay Special Dividend, Boost Stock Repurchase Program

Nordstrom Inc.'s stock jumped 4.3% in after-hours trade Thursday, after the high-end department store chain announced plans for a special dividend and raised its stock repurchase program following the completion of the sale of its credit card portfolio. The company said it would pay a special cash dividend of $4.85 a share on Oct. 27, to shareholders of record on Oct. 12. Nordstrom said it was adding $1 billion to its stock repurchase program. Nordstrom's capital allocation plans were revealed as it announced the completion of the sale of its credit card portfolio for $2.2 billion to TD Bank U.S.A. As part of the sale agreement, TD becomes the exclusive issuer of Nordstrom-branded credit cards. The stock shed 10% year to date through Thursday, while the S&P 500 has lost 6.6%.