AP Ahead of the Bell: Saks Wednesday October 4, 8:07 am ET Saks Announces Special Dividend; Some Analysts Fret Over Move NEW YORK (AP) -- Upscale department store operator Saks Inc. late Tuesday said it plans to pay out a special dividend of $4 per share -- which amounts to about $550 million -- following its sale of Parisian stores. The dividend will return excess cash to shareholders, Saks said, including $285 million in proceeds from the sale of Parisian to Belk Inc. Saks said it will record $17 million or $18 million in charges in the fourth quarter to adjust employee stock options to reflect the dividend. Goldman Sachs analyst Adrianne Shapira said investors will regard the dividend as "positive and an effective use of excess cash." However, Citigroup analyst Deborah Weinswig called the dividend a "slight negative," and said share buybacks would have added to her confidence in the company's outlook about its future. Weinswig has a "Hold" rating on the stock. Morgan Stanley analyst Michelle L. Clark said the dividend suggests management doesn't think the shares are worth more than the current market value and that a rebound in operating performance is note likely to occur over the near-term. "We question (Tuesday's) announcement just as we did heavy insider selling in August," wrote Clark, who has an "Underweight" rating on the stock. Shares of Saks, which operates 50 Saks Fifth Avenue outlets and 50 Saks Off 5th stores, closed Tuesday at $17.57.