SanDisk Corporation (NASDAQ: SNDK), a global leader in flash memory storage solutions today announced that it has expanded its capital return program with the initiation of a quarterly dividend and the authorization of $2.5 billion of additional stock repurchases. The company will complete part of this stock repurchase through a $1.0 billion Accelerated Share Repurchase ("ASR") agreement, which was entered into today.
The SanDisk Board of Directors has approved the initiation of a quarterly cash dividend of $0.225 per share of common stock, equivalent to an annual yield of approximately 1.6% based on the July 31, 2013 closing price of $55.12. On an annualized basis, this will return approximately $220 million to stockholders based on shares outstanding as of June 30, 2013. The first dividend payment will be made on August 30, 2013 to holders of record on August 12, 2013. Future dividend payments are subject to review and approval by the Board.
As of today, the company has entered into a $1.0 billion ASR agreement with a financial institution. Under the terms of the ASR, SanDisk will receive during the third fiscal quarter of 2013 an initial delivery of approximately 14.5 million shares based on current market prices. The final number of shares to be repurchased will be based on SanDisk's volume-weighted average stock price during the term of the agreement, which is expected to be completed no later than April 8, 2014.
The $2.5 billion of stock repurchase authorization brings the total amount authorized for stock repurchases to $3.75 billion. Approximately $2.1 billion remains available for repurchase following the execution of the $1.0 billion ASR agreement, year-to-date purchases of approximately $435 million and prior years' purchases.
"Today's announcements underscore our confidence in the company's business and our commitment to share our success with our shareholders," said Sanjay Mehrotra, president and chief executive officer of SanDisk. "The dividend provides immediate and ongoing returns to our shareholders, and we believe that utilizing our cash for share repurchases will add significantly to long-term shareholder value."
Recommended for You
Latest News Posts
- Nintendo Switch retail packaging wastes so much space
- Mass Effect: Andromeda's combat looks amazingly fun
- Top 15 Presidents Day Kaby Lake laptop deals for 2017
- AMD Ryzen CPUs spotted in the flesh, retail boxes too
- LG officially announces the G6 camera specs
- Changing Device ID
- Z170M Pro4S underperforming RAM / UEFI bug
- PC may end up in a reboot cycle from cold boot.
- Gigabyte GA-Z97X Gaming G1 M.2 SSD Supported?
- Asus PRIME B250-PLUS Integated Graphics issue
- ASUS announces VivoMini VC66R and VC66
- BIOSTAR RACING Series motherboard lineup for AMD RYZEN announced
- Team Group officially announces the T-FORCE DARK series memory module with ASUS ROG Certified
- MSI announces Aero ITX series graphics cards
- ASUS Partners with WPGI womens Esports league