Marsh & McLennan Companies, Inc. (NYSE: MMC) today announced an agreement with a financial institution counterparty to repurchase $800 million worth of outstanding MMC common stock in an accelerated share repurchase transaction. MMC will conduct the transaction as part of the $1.5 billion share repurchase authorization announced on August 7, 2007. MMC will fund the transaction with proceeds from the recent sale of Putnam Investments. MMC (Marsh & McLennan Companies) is a global professional services firm providing advice and solutions in the areas of risk, strategy and human capital.
PAYOUT YIELD ANALYSIS
With 541 million shares outstanding, the $800 million ASR will return $1.48 per share. $700 million will remain on the current authorization and would return an additional $1.29 per share. Combined with the annualized dividend of $0.76, the Total Payout would be $3.53 per share if the total repurchase program is completed in the next 4 quarters. At a share price of $26.50, the Total Payout Yield would be 13.3%.
- Payout Yield Staff