Motorola (NYSE: MOT) announced a series of actions to improve shareholder value.
One of the key moves was a renewed commitment to returning capital to shareholders that includes an expansion of the July 2006 repurchase program from $4.5 billion to $7.5 billion over a 36 month period. In addition, the company will accelerate the repurchase of $2 billion of stock. Once the accelerated repurchase is complete, $4.5 billion of the $7.5 billion program will remain for future purchase. The quarterly dividend remains unchanged at $0.05 per share after a 25% increase in May 2006.
PAYOUT YIELD ANALYSIS
With 2.5 billion shares outstanding, the $2.5 billion repurchase effected since July yields $1.00 per share. The annualized dividend of $0.20 combined with the $1.00 from the repurchase program will result in a Total Payout of $1.20 over the next 4 quarters. At $18 per share, the Total Payout Yield is projected to be 6.7%. The balance of the approved buyback program enables Motorola to sustain the current level of Total Payout Yield for the next 36 months.
- Payout Yield Staff