Saturday, February 6th, 2010
Top 3 Meaningful Stock Buyback Plans
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Syngenta AG (NYSE:SYT), Colgate-Palmolive Company (NYSE:CL), and Ross Stores, Inc. (NASDAQ:ROST) are three companies that instituted meaningful stock buyback programs that are worth watching for investors and shareholders.
Syngenta’s Pays Shareholders $750 Million
Syngenta AG (SYT, Free Analysis), a crop protection and seeds business, shares fell recent despite its strong performance in 2009 and bright outlook for the rest of this year. In the face of negative currency movements and higher raw material costs, the company’s 2009 earnings came close to the record levels seen in 2008 and in-line with analyst estimates.
Thanks to the strong performance, the company announced plans to pay and maintain a 2009 dividend and institute a share repurchase plan, representing a combined total cash return to shareholders of around $750 million. Meanwhile, the company also expects volume growth starting in the second quarter, which should help drive top line results.
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Colgate Fails to Impress but Hikes Dividend, Buyback
Colgate-Palmolive Company (CL, Free Analysis), a diversified consumer goods company, failed to impress the street with its strong earnings report, but a dividend hike and share buyback plan may convince shareholders to stay onboard. Combined, the moves promise to return a substantial amount of cash to shareholders as the company’s outlook appears bright.
Reflecting the company’s positive outlook, the board of directors increased the stock’s dividend by 20% to $0.53 per share per quarter. Meanwhile, the company also authorized a new share buyback program that involves the purchase of 40 million shares over the next two years. These transactions may take place in the open market or in privately-negotiated transactions.
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Ross Launches $750 Million Buyback
Ross Stores, Inc. (ROST, Free Analysis), an off-price retail apparel and home accessory store chain, also failed to impress the street with its solid earnings report, but its sizable $750 million share repurchase program and 45% dividend hike is hard to miss. Combined, the two programs stand to return substantial cash to shareholders over the coming years.
The company’s board of directors announced that it approved a new two-year $750 million stock repurchase program. At current prices, this program would acquire about 13% of the company’s total market value. Meanwhile, the board also approved a 45% increase in the company’s quarterly cash dividend to $0.16 per share per quarter.
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-- Written by David Breen
