Thursday, August 02, 2007

Stock Buyback Announcements Continue--Show Me The Dividend

The buyback train continues rolling down the track. If the companies committed to a dividend increase or a larger increase than reported, it could be a signal of better business prospects ahead. Following are stock buybacks announced today:
  • Dover Corporation (DOV) announced it has approved a share repurchase program whereby the company will buy back approximately $500 million worth of Dover common stock. The program authorizes the repurchase of 10,000,000 shares or approximately 5% of its outstanding shares. As part of this program, the company also announced it has entered into an accelerated share repurchase agreement ("ASR") with Goldman, Sachs & Co. Under this agreement, the company will immediately repurchase 6 million shares of its common stock from Goldman, Sachs & Co. The company expects to conduct the remainder of the share repurchase program over the next 3-6 months through open market transactions. It will fund its share repurchases through cash on hand and existing credit facilities. The company also announced an 8% increase in the company's quarterly cash dividend to 20 cents per share versus 18.5 cents in the same quarter last year.
  • Vineyard National Bancorp (VNBC) said Thursday it expanded a stock buyback program by $20 million to reassure shareholders amid a turbulent market.
  • Pool Corp. (POOL) raised its share repurchase authorization to $100 million.
  • AmerisourceBergen Corp. (ABC)agreed to a $250 million accelerated buyback deal with Bank of America NA.
  • Hasbro Inc. (HAS) on Thursday said its board authorized the repurchase of $500 million in shares.
  • Marriott International Inc. (MAR) increased its buyback program by 40 million shares, making the total repurchase program 51 million shares.
  • FirstFed Financial Corp., (FED) the parent of First Federal Bank of California, said its board approved a plan to buy back an additional 1.5 million shares of common stock, about 10 percent of outstanding shares as of Aug. 1.
  • Patterson-UTI Energy Inc. (PTEN) said its board has approved a stock buyback of up to $250 million.
  • Invitrogen Corp., (IVGN)said it authorized a $500 million stock buyback program.
  • Lufkin Industries Inc., (LUFK)said it had authorized up to $30 million in cash repurchases of common stock.


Andrew Horowitz said...

Nice Post and nice blog. Well done.

I wanted to share the information and post we have been working on regarding share buybacks and the potential for a huge hangover to follow. The first link is to a recent post and the second is to a podcast with Howard Silverblatt from S&P who wrote a great piece on this recently.

Keep in touch..




David Templeton, CFA said...

Thanks for the comment Andrew.

I recently made a visit to your site from a link from the Big Picture website. I listened to your video with Howard Silverblatt and Barry Ritholtz. It was well done.