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United Health
UnitedHealth Group (NYSE:UNH) announced completion of the repurchase of $2 billion of stock in the third quarter and projected an additional $7 billion share repurchase through fourth quarter 2007 and 2008.
UnitedHealth Group (www.unitedhealthgroup.com) is a diversified health and well-being company dedicated to making health care work better.
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PAYOUT YIELD ANALYSIS
The $7 billion repurchase projection, or $5.6 billion on an annualized basis, would be well ahead of the $2 billion completed in 2005 and 2006. However, with almost $14 billion of cash and investments on the balance sheet, the company will not have a problem stepping up the pace of the stock buyback program.
With 1.32 billion shares outstanding, the $5.6 billion annualized repurchase will return $4.24 per share to shareholders. Combined with an annualized dividend of $0.03 per share, the Total Payout is projected to be $4.27 per share over the next 4 quarters. At a share price of $48, the Total Payout Yield is projected to be 8.9%.
- Payout Yield Staff
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Worthington Industries
Worthington Industries, Inc. (NYSE:WOR) will repurchase of up to an additional ten million of its outstanding common shares.
A prior authorization to repurchase ten million shares dated June 13, 2005, has 1.4 million shares remaining. No timetable was established for the new repurchase.
Worthington Industries is a leading diversified metal processing company with annual sales of nearly $3 billion.
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PAYOUT YIELD ANALYSIS
At a share price of $23, the 11.4 million share repurchase promises to return $262 million to shareholders over what will likely be a 2 year period or at a rate of $131 million per year. With 85 million shares outstanding, the repurchase will return $1.54 per share per year. Combined with the annualized divdidend of $0.68, the Total Payout is projected to be $2.22 with a Total Payout Yield of 9.7%.
- Payout Yield Staff
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Chevron
Chevron Corporation (NYSE: CVX) announced today that its Board of Directors approved a program to acquire up to $15 billion of the company’s common stock over a period of up to three years. This program follows three stock repurchase programs of $5 billion each that were completed in 2005, 2006 and September 2007.
No set timetable was established for the share repurchase program.
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PAYOUT YIELD ANALYSIS
Although $15 billion sounds like a lot, the program will likely extend over 3 years based on past performance. That fact, combined with the company’s nearly $200 billion market cap and forward dividend yield of 2.5% makes the predicted Total Payout Yield less than 5%.
- Payout Yield Staff
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Air Products
Air Products (NYSE: APD) has authorized the repurchase of up to $1 billion of its common stock.
The latest action is in addition to an existing $1.5 billion share repurchase program announced in March 2006. The company has repurchased more than $1 billion under its existing $1.5 billion plan.
Last week, the Board of Directors also declared a quarterly dividend of 38 cents per share of common stock. The dividend is payable on November 12, 2007 to shareholders of record at the close of business on October 1, 2007.
Air Products serves customers in industrial, energy, technology and healthcare markets worldwide with a unique portfolio of atmospheric gases, process and specialty gases, performance materials, and equipment and services.
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Payout Yield Analysis
With 216 million shares outstanding, the combined share repurchase authorization of $1.5 billion will return $6.94 per share. Combined with the $1.52 annual dividend, the Total Payout Yield will be $8.46 per share if the share repurchases are completed in the next 4 quarters. At $93 per share, the Total Payout Yield will be 9.1%.
- Payout Yield Staff
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Texas Instruments
Texas Instruments (NYSE: TXN) announced the repurchase of an additional $5 billion of its common stock. Additionally, the company plans to raise its quarterly cash dividend 25 percent to $0.10 per share.
This most recent action brings the Board’s total stock repurchase authorization since September 2004 to $20 billion. Today’s announced authorization is in addition to any outstanding authorizations, which totaled approximately $3.8 billion at the end of the second quarter.
Texas Instruments Incorporated provides innovative DSP and analog technologies to meet customers’ real world signal processing requirements.
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Payout Yield Analysis
With 1.43 billion shares outstanding, the $8.8 billion of outstanding authorization will return $6.15 per share. However, the company’s track record of executing share repurchases is uneven, ranging from $2 to $4 billion per year. Combined with the new annualized dividend of $.40, we project the Total Payout will be $1.80 - $3.20 per share. At a share price of $37 per share, the Total Payout Yield will be 4.8% to 8.6%.
- Payout Yield Staff
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Cracker Barrel
CBRL Group Inc. (Nasdaq: CBRL), operator of Cracker Barrel Old Country Store restaurants, said Thursday its board increased the company’s quarterly dividend by 29 percent to 18 cents per share, from 14 cents previously.
The dividend is payable on Nov. 5 to shareholders of record on Oct. 19.
The company also said its board approved the repurchase of up to 1 million outstanding common shares from time to time through open market purchases.
CBRL Group operates 564 Cracker Barrel Old Country Store restaurants and gift shops located in 41 states.
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PAYOUT YIELD ANALYSIS
At a recent share price of $40, the 1 million share buyback promises to return $40 million to shareholders or $1.69 per share. Combined with the forward dividend of $0.72, the Total Payout is projected to be $2.41 per share if the buyback is completed over the next 4 quarters. At $40 per share, the Total Payout Yield is 6.0%.
- Payout Yield Staff
