Payout Yield

Time Warner Inc. (NYSE:TWX) announced a new $5 billion stock repurchase program.  The company did not specify how the program would be funded.

In completing its previous stock repurchase program on schedule at the end of the second quarter, the Company repurchased approximately 1.1 billion shares of common stock, or about 23% of the total outstanding shares at the program’s inception, for approximately $20 billion.

Time Warner Inc. is a leading media and entertainment company, whose businesses include interactive services, cable systems, filmed entertainment, television networks and publishing.

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Payout Yield Analysis

With 3.8 billion shares outstanding, the $5 billion repurchase program will return $1.32 per share.  The annualized dividend of $0.25 combined with the $1.32 from the repurchase program produces a Total Payout of $1.57.  At a share price of $19, the Total Payout Yield is projected to be 8.3% if the program is completed over the next 4 quarters.

- Payout Yield Staff