Lennox International Inc. (NYSE: LII) announced a share repurchase plan for $500 million to be completed by the end of Q3 2008.
The company cited a commitment to improving shareholder returns and flexibility to pursue strategic opportunities to grow the business.
Lennox International is a global leader in the heating, air conditioning, and refrigeration markets.
PAYOUT YIELD ANALYSIS
With 68 million shares outstanding, the $500 million repurchase promises to return $7.35 per share. Combined with an annualized dividend of $0.52, the Total Payout will be $7.87 per share over the next 4 quarters. At a share price of $37, the Total Payout Yield is projected be 21%.
The company did not provide details on how it plans to finance the repurchase program. As of June 30, 2007, the company reported a balance of $120 million of cash and equivalents.
- Payout Yield Staff