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
- Watch Dogs 2 updated on the PC, long list of fixes
- Del Toro: F*ck Konami, killing Silent Hills was moronic
- NBA is being aired in 4K in the US this weekend
- Ubisoft: PC-like consoles was a 'good decision'
- 8 minutes of new Prey gameplay footage released
- ROCCAT SOVA MK Gaming Lapboard Review
- ASRock 990fx extreme4 & Fast- Ultra Fast Boot Issues
- Fnatic Gear Clutch G1 Optical Gaming Mouse Review
- X99 Professional Gaming i7 and RAM question
- ADATA SV620 480GB Portable SSD Review
- ENERMAX launches REVOLUTION SFX, with the highest wattage 650W full modular SFX Model in standard 100mm depth
- Intel Extreme Masters Season 11 finals confirmed for two weekends in March with more than $600,000 in prizing
- Ultimate Media Ventures teams up with The Coalition for sanctioned December 18 Gears Of War 4 Pro-Am eSports Battle On The Strip Event
- Thecus introduces Scale-Out architecture to meet rising enterprise storage demand
- Plantronics launches RIG 800 series - first 24-hour wireless gaming headset