Dover Corporation (NYSE: DOV) announced a $500 million share repurchase program that includes an accelerated share repurchase agreement (“ASR”) with Goldman, Sachs & Co.
Under the ASR, Dover will immediately repurchase 6 million shares of its common stock from Goldman, Sachs & Co. The company expects to conduct the remainder of the share repurchase program over the next 3-6 months through open market transactions. It will fund its share repurchases through cash on hand and existing credit facilities.
The company also announced it increased its quarterly cash dividend to $0.20 (twenty cents) per share from the previous $0.185 (eighteen and one half cents) per share, an increase of 8.1%.
Dover Corporation is a diversified industrial manufacturer with over $7 billion in annualized revenues.
PAYOUT YIELD ANALYSIS
With 205 million shares outstanding, the $500 million repurchase will return $2.44 per share. The new annualized dividend of $0.80 per share combined with the repurchase program produces a Total Payout of $3.24 per share. At a share price of $52, the Total Payout Yield is projected to be 6.2%.
- Payout Yield Staff