Rohm and Haas Company (NYSE: ROH) announced the repurchase of up to $2 billion of common stock in a two stage action.
The company will complete its existing share repurchase program and execute the ASR in third quarter, reducing the number of shares to 195 million by the end of September 2007. The ASR will be funded by the issuance of new debt. The remaining $1 billion repurchase will be completed over the period 2008-2010 with cash on hand.
The company cited a commitment to drive shareholder value and confidence in the long-term potential for Rohm and Haas.
The company also declared a regular quarterly dividend of $0.37 per common share.
Rohm and Haas is a global leader in the creation and development of innovative technologies and solutions for the specialty materials industry.
PAYOUT YIELD ANALYSIS
With 216 million shares outstanding, completion of the existing program and execution of the ASR will return $6.11 to shareholders. The repurchase program combined with the annualized dividend $1.48 will produce a Total Payout of $7.59 over the next 4 quarters. At a share price of $60, we project the Total Payout Yield to be 12.3%.
The remaining $1 billion of the repurchase program will return an annualized $1.71 over the period 2008-2010. Combined with the annualized dividend, the Total Payout is projected to be $3.19 per year with an annual Total Payout Yield of 5.3%.
- Payout Yield Staff