J.C. Penney Cuts Dividend Payout

J.C. Penney Co. cut its dividend by more than half as the company boosts investments in its department-store and Eckerd drugstore businesses to stem falling prices and profit. The second-largest department-store company is cutting its dividend payable Nov. 1 to 12.5 cents a share from 28.75 cents, the second reduction in less than a year. The board also formally elected Allen Questrom as chairman and chief executive after naming him to the jobs in July. The Plano, Texas-based chain last month said profit plunged 90% in its second fiscal quarter ended July 29, and that second-half earnings may be hurt if slow sales continue. Poor sales of apparel, housewares and other goods forced J.C. Penney to cut prices, reducing profit on each sale. Shares of J.C. Penney fell 69 cents to close at $13.88 on the NYSE.