Gap says no change to dividend payment policy, shares fall

Tue Dec 4, 2012 3:05pm EST

Dec 4 (Reuters) - Shares of Gap Inc were down 9 percent Tuesday after the retailer confirmed there has been no change to its dividend payment policy.

The company has not paid a special dividend before, and sticks to share buybacks and regular dividend payments. Last month, it announced a quarterly dividend of 12.5 cents per share payable on or after January 30 to shareholders of record at the close of business on January 2.

Shares of Gap started falling earlier in the day amid market rumors that the company would not pay a special dividend as some believed it would. Gap shares were trading at $31.33 Tuesday afternoon on the New York Stock Exchange, after closing at $34.51 on Monday.

A couple walks along the rough surf during sunset at Oahu's North Shore, December 26, 2013. REUTERS/Kevin Lamarque

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