American Eagle moves up two dividends; shareholders could save on taxes

Alex Nixon
| Tuesday, Dec. 4, 2012, 10:30 a.m.

American Eagle Outfitters Inc. said Tuesday that it will push up payment of two quarterly dividends from next year to this month, a move that could save its shareholders at tax time.

The South Side-based clothing retailer said it will pay a cash dividend of 22 cents a share on Dec. 28 to shareholders of record as of Dec. 19. It accelerated dividends of 11 cents each that would have been paid in January and April next year.

The move by American Eagle is the latest among a string of national retailers that have pushed up dividend payments to December on concerns that taxes on those payments will nearly triple in 2013.

The tax rate on dividends of 15 percent will automatically rise to 43.4 percent next month unless Congress acts to stop it.

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