Hasbro, Inc. (NYSE:HAS) announced an additional $500 million common stock repurchase.
The company did not comment on how the repurchase would be funded.
Since May 2005, the Company has spent $692.1 million to repurchase 31,653,000 shares (not including $200 million recently spent to retire the Lucas warrants for 15,750,000 shares) and has only $7.9 million remaining in the July 2006 authorization.
Hasbro is a worldwide leader in children’s and family leisure time entertainment products and services.
PAYOUT YIELD ANALYSIS
Although the company was not specific on how it planned to pay for the repurchase, $500 million of cash on hand, plenty of debt capacity and a solid track record of repurchasing shares makes a solid case that management will follow through on their commitment.
With 159 million shares outstanding, the $500 million repurcase will return $3.14 per share. The annual dividend of $0.64 combined with the repurchase results in a Total Payout of $3.78 per share. At a share price of $28, the Total Payout Yield is projected to be 13.5%.
- Payout Yield Staff