JACKSONVILLE, Fla. (AP) -- Stein Mart Inc. said Tuesday that it will resume paying a quarterly dividend, based on its increased confidence in its ability to generate free cash flow.
The discount retailer, based in Jacksonville, Fla., sells clothes, home decor and other items at its estimated 262 stores nationwide.
Stein Mart decided in 2008 to suspend its quarterly dividend and slow its store expansions to cope with the tough industry conditions stemming from the recession. It last paid a regular quarterly dividend in 2007 at 6.3 cents per share. It paid special cash dividends of 50 cents in 2010 and $1 in 2013.
The company is initiating its new quarterly dividend at 5 cents per share. The first dividend is payable on July 19 to shareholders of record as of July 5.
Stein Mart shares fell 13 cents to $13.27 by midday. Its shares remain at the upper-end of its 52-week trading range of $6.56 to $13.70.