Summary
KLA-Tencor Corporation (KLAC) announced a significant return of capital to shareholders via their November 8, 2012, 8-K filing. The company's Board of Directors declared a cash dividend of $0.40 per share, payable on December 3, 2012, to shareholders of record on November 19, 2012. This action signals the company's confidence in its financial position and commitment to rewarding its investors. In addition to the dividend, KLA-Tencor also authorized an additional repurchase of 8 million shares of its common stock. This substantial share buyback program, which is additive to previous authorizations, indicates management's belief that the company's stock is undervalued and is another key strategy to enhance shareholder value by reducing the number of outstanding shares.
Key Highlights
- 1KLA-Tencor declared a cash dividend of $0.40 per share.
- 2The dividend payment date is December 3, 2012.
- 3Shareholders of record as of November 19, 2012, will receive the dividend.
- 4The company's Board of Directors authorized an additional 8 million share repurchase program.
- 5This repurchase authorization is in addition to any previously existing authorizations.
- 6The announcements reflect a strategy to return capital to shareholders.