Gap approves plan to raise yearly dividend Gap announced that its Board of Directors has approved a plan to increase the company’s annual dividend per share by 20% from 50c in fiscal year 2012 to 60c in fiscal year 2013. The first quarterly dividend of 15c per share was declared for payment on or after May 1to shareholders of record at the close of business on April 10. Additional quarterly dividends are expected to be paid in July, October, and January.
Credit Suisse remains cautious on The Gap Credit Suisse believes The Gap's (GPS) core brand continues to struggle and is losing relevance with consumers. The firm's analyst said Gap brand's value proposition is being eroded by the rise of low-cost "deep value" retailers with efficient supply chains and lower markdown risk. Credit Suisse said Gap's supply chain is reliant on long-lead times and design teams removed from production, which should lead to comp and earnings pressure. Credit Suisse rates The Gap an Underperform with a $34 price target.