EnerSys Initiates First Quarterly Dividend
Stored energy solution specialist EnerSys announced yesterday it would be initiating its first quarterly dividend payment of $0.125 per share, payable on June 28 to the holders of record at the close of business on June 14.
At the same time, the company said it would start a new $65 million stock buyback program that is in addition to its standing share repurchase plan that was implemented to minimize share dilution caused by its equity incentive plans. The buyback plan will expire on March 31, 2014, but the board cautioned the program could be modified, extended, or terminated at any time.
EnerSys CEO John D. Craig said: "Our level of profitability and cash generation affords the Company the ability to pay a quarterly dividend and repurchase stock while maintaining our acquisition strategy, increasing capital expenditure programs and continuing our growth in the developing markets."
The regular dividend payment equates to a $0.50-per-share annual dividend, yielding 1% based on the closing price of EnerSys's stock on May 28.
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