J.C. Penney’s Continues Quarterly Dividend

Retailer J.C. Penney’s (JCP: 30.21 -0.33%) announced that their Board of Directors has approved a quarterly dividend of $.20 per share.

J.C. Penney’s current dividend yield stands at 2.9%.

While the company is maintaining its current dividend payout for now, the dividend yield remains at risk. At its current dividend level the company will payout $.80 per share in dividends this year. Meanwhile, Wall Street consensus estimates are only anticipating $.73 per share in earnings. Such a shortfall can only be temporary and unless we see signs of a significant economic recovery in the coming months we would expect JCP to reduce their dividend payment.

J.C. Penney’s stock has surged in 2009, with shares up almost 40% since the beginning of the year.