Johnson and Johnson (NYSE: JNJ) announced a share repurchase program of up to $10 billion. The company cited shareholder value and investment flexibility as factors in the announcement.
The Company intends to finance the share repurchase program through a combination of cash and debt.
Johnson & Johnson is the world’s most comprehensive and broadly based manufacturer of health care products, as well as a provider of related services, for the consumer, pharmaceutical and medical devices and diagnostics markets.
PAYOUT YIELD ANALYSIS
With 2.9 billion shares outstanding, the $10 Billion repurchase program will yield $3.45 per share. The annual dividend of $1.66 combined with the repurchase would result in a Total Payout of $5.11 per share. At a share price of $63, the Total Payout Yield would be 8.1%.
- Payout Yield Staff