Seagate Technology plc (NASDAQ:STX) today announced that its Board of Directors has approved a 17 percent increase in the company's targeted regular cash dividend. The targeted annual dividend will increase from $2.16 to $2.52 per share and will continue to be paid quarterly. The first payment at the new quarterly rate of $0.63 per share is scheduled to be paid on November 20, 2015 to shareholders of record as of the close of business on November 6, 2015. The declaration and payment of any future quarterly dividends will continue to be at the discretion of the Board of Directors and will be dependent upon Seagate's financial position, results of operations, available cash, cash flow, capital requirements and other factors deemed relevant by the Board.
"Today's increase in our dividend targets reflects our confidence in Seagate's ability to continue to generate sustainable operating cash flow and maintain a strong balance sheet," said Steve Luczo, Seagate chairman and chief executive officer. "This is consistent with our capital allocation priorities we have previously articulated, including returning cash to shareholders through dividends and share redemption."