Limited Brands, Inc. (NYSE: LTD) announced an increase in its share repurchase program from $500 million to $1 billion as part of an initiative to accelerate programs to return value to shareholders. The company has already repurchased $190.5 million of shares as part of this program.
The company’s Chairman and CEO, Leslie Wexner, cited a strong balance sheet, confidence in future growth prospects and commitment to returning value to shareholders as factors in the increase. The repurchase acceleration will be funded by new debt.
Limited Brands, through Victoria’s Secret, Bath & Body Works, C.O. Bigelow, Express, Limited Stores, La Senza, White Barn Candle Co., Henri Bendel and Diva London, presently operates 3,764 specialty stores.
PAYOUT YIELD ANALYSIS
With 398 million shares outstanding, the $810 million remaining in the authorization would return $2.04 if completed in the next 12 months. Combined with the current annual dividend of $0.60, the Total Payout would be $2.64 over the next 4 quarters. At $27 per share, the Total Payout Yield would be 9.8%.
- Payout Yield Staff