Monsanto Declares Dividend, and $2 Billion Buyback Program
Genetically modified seed giant Monsantoannounced yesterday its third-quarter dividend of $0.375 per share, the same rate it's paid the past three quarters after it raised the payout 25% from $0.30 per share.
The board of directors said the quarterly dividend is payable on July 26 to the holders of record at the close of business on July 5. The seed company has made a quarterly payout to investors since 2000.
At the same time as it announced the dividend, Monsanto also said it was authorizing a new share repurchase program, beginning July 1, to buy back up to $2 billion of the company's stock over a three-year period. The program will begin as soon as its current $1 billion plan, which was begun in July 2012, is completed.
Monsanto CFO Pierre Courduroux said:
The strong business performance we've achieved has allowed us the opportunity to evolve our cash deployment approach as we look to return more value to our shareowners. As we continue to grow our global business, we will use the strength of our cash position to both grow our business through investments, as well as returning cash to shareowners in the form of dividends and share repurchases.
The regular dividend payment equates to a $1.50-per-share annual dividend, yielding 1.5% based on the closing price of Monsanto's stock on June 6.
The article Monsanto Declares Dividend, and $2 Billion Buyback Program originally appeared on Fool.com.Fool contributor Rich Duprey has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.