Praxair, Inc. (NYSE: PX) will repurchase up to $1 billion of its common stock over the next two years.
The company cited a strong balance sheet and growing free-cash-flow generation from operations.
The purchases will be financed by available cash and debt and replaces the repurchase program in effect since 1997.
The board of directors also has declared a quarterly dividend of 30 cents per share, unchanged from the previous quarter.
Praxair is the largest industrial gases company in North and South America, and one of the largest worldwide, with 2006 sales of $8.3 billion.
PAYOUT YIELD ANALYSIS
With 319 million shares outstanding, the repurchase program will return $3.13 per share over the next two years or $1.56 per share annually. The dividend of $1.20 combined with the repurchase generates a Total Payout of $2.76 per share. At a share price of $76, we project the Total Payout Yield to be 3.6% per year over the next two years.
- Payout Yield Staff