Summary
Marriott International, Inc. announced two significant capital allocation decisions by its Board of Directors on November 4, 2010. First, the company substantially increased its authorization for repurchasing its Class A Common Stock, allowing for up to an additional 25 million shares to be bought back. This signals management's confidence in the company's valuation and a commitment to returning capital to shareholders. Second, Marriott declared its quarterly cash dividend, maintaining its commitment to regular income distribution to its investors.
Key Highlights
- 1Increased share repurchase authorization by 25 million shares for Class A Common Stock.
- 2Share repurchases can occur through open market or privately negotiated transactions.
- 3Declared a quarterly cash dividend of $0.0875 per share of common stock.
- 4Dividend is payable on January 7, 2011.
- 5Record date for the dividend is November 18, 2010.
- 6These actions reflect the company's strategy of returning capital to shareholders.
- 7Management appears confident in the company's financial position and stock value.