Parker Announces $500 Million Accelerated Share Repurchase

Parker Hannifin Corporation (NYSE: PH) announced a $500 million accelerated share repurchase. In addition, the company increased its quarterly cash dividend, and announced plans for a 3-shares-for-2 stock split.

The accelerated share repurchase will be funded with available credit and uses Morgan Stanley as the intermediary to purchase Parker’s common stock over a period of up to four months. 9.5 million shares remain available for repurchase from the previous authorization.

With annual sales exceeding $10 billion, Parker Hannifin is the world’s leading diversified manufacturer of motion and control technologies and systems, providing precision-engineered solutions for a wide variety of commercial, mobile, industrial and aerospace markets.

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PAYOUT YIELD ANALYSIS

With 116 million shares outstanding, the $500 repurchase will return $4.31 per share. The 9.5 million shares remaining under the previous authorization represent an additional return of $855 million or $7.37 per share. With the increased annual dividend of $1.26, the Total Payout for the ASR is $5.57 and the projected Total Payout including the impact of the previous authorization is $12.94 per share. At a share price of $90, the Total Payout Yield is 14.4%.

- Payout Yield Staff

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