Moody’s Corporation (NYSE: MCO) announced a new $2 billion share repurchase program.
Moody’s expects to commence repurchases under the new program immediately following completion of the existing program. The company did not specify the source of funds for the repurchase.
Moody’s Board of Directors also declared a regular quarterly dividend of 8 cents per share of Moody’s common stock.
Moody’s is an essential component of the global capital markets. It provides credit ratings, research, tools and analysis that help to protect the integrity of credit.
PAYOUT YIELD ANALYSIS
Based on the company’s balance sheet, cash flow and track record of repurchases, we project that the $2 billion program will take 2 years to complete in the absence of a leveraged approach.
With 274 million shares outstanding, the $2 billion repurchase promises to return $3.65 per share a year over the next 2 years. Combined with the annualized dividend of $0.32, the Total Payout is projected to be $3.97. At a share price of $55, the Total Payout Yield is projected to be 7.2%.
- Payout Yield Staff