Ahead of the Bell: Limited Brands
NEW YORK (AP) — Limited Brands, operator of Victoria's Secret, Bath & Body Works and other stores, may initiate a special dividend soon, an analyst said Wednesday.
Oliver Chen of Citi Investment Research said in a client note that Limited Brands has issued two special dividends every year since 2010 and believes that the consistency will probably continue. The company issued a $1 per share special dividend in July.
Chen said that Limited Brands has reported strong sales results since August and boasts an impressive capital structure. The analyst believes that if the Columbus, Ohio, company issues a special dividend soon that it may be $2 per share as the company has historically paid special dividends between $1 and $3 per share.
Chen reaffirmed a "Buy" rating with a $60 price target.
Limited Brands Inc. shares finished at $51.30 on Tuesday. They have traded in a 52-week range of $37.57 to $52.50.