Seattle-based Nordstrom Inc . (NYSE:JWN), currently trading near its 52-week high at $24.39 with a market capitalization of $4.07 billion, announced Friday that it has established May 19, 2025, as the record date for shareholders eligible to receive potential special and "stub period" dividends, contingent upon the closing of the company’s merger with Norse Holdings, Inc. and its subsidiary, Navy Acquisition Co. Inc. According to InvestingPro analysis, the company maintains a "GOOD" financial health score, suggesting strong fundamentals heading into this corporate action. The merger, previously disclosed on December 22, 2024, is pending approval at the Special Meeting of Shareholders scheduled for May 16, 2025.
The special cash dividend, if declared, would be paid to shareholders of record one trading day prior to the merger’s effective time. The amount could be $0.25 per share or an adjusted amount ensuring the company’s cash on hand is no less than $410 million post-dividend payment. Additionally, a stub period cash dividend may be paid, calculated based on the number of days from the last quarterly dividend record date to the day before the merger effective date. Currently, Nordstrom offers a dividend yield of 3.12%, supported by its strong free cash flow yield of 18%. For deeper insights into Nordstrom’s dividend sustainability and comprehensive financial analysis, access the full InvestingPro Research Report, part of the platform’s coverage of over 1,400 US stocks.
While the Nordstrom Board has yet to declare these dividends or determine their specific amounts and payment dates, the company has indicated that such details will be disclosed prior to the merger’s completion. The merger’s closure is subject to several conditions, including shareholder approval.
This information is based on a press release statement filed with the SEC. Nordstrom has emphasized that there can be no assurance that the dividends will be declared or paid, or what the final amounts might be.
In other recent news, Nordstrom Inc. disclosed its quarterly financial results, reporting normalized earnings of $1.10 per share for the fourth quarter, which exceeded consensus estimates by $0.17. The company’s revenue for the quarter was $4.32 billion, slightly below expectations by $5 million. Nordstrom also announced a forthcoming merger with Norse Holdings, Inc., which will see the company become a wholly-owned subsidiary. As part of this process, Nordstrom has notified employees of a temporary blackout period for its 401(k) Plan, restricting certain transactions until the merger’s completion. Additionally, CFRA analyst Zachary Warring upgraded Nordstrom’s stock from Sell to Hold, raising the price target to $24.00, citing anticipated improvements in operating metrics. The company is also set to go private after an acquisition by the Nordstrom Family and El Puerto de Liverpool, S.A.B. de C.V., with a cash offer of $24.25 per share expected to close within the year. Furthermore, Nordstrom’s Chief Financial Officer Catherine R. Smith announced her resignation, expected to take effect following the filing of the company’s Annual Report. These developments reflect significant changes in Nordstrom’s corporate structure and financial strategies.
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