Summary
Seagate Technology plc announced a significant increase in its shareholder return policy through a substantial dividend hike. The company's Board of Directors has approved a 26% increase in the targeted regular cash dividend, raising it from $1.72 to $2.16 per share on an annual basis. This new dividend rate will be implemented starting with the next quarterly payment, scheduled for November 25, 2014, at $0.54 per share. This decision signals strong confidence from Seagate's management in the company's financial health and future cash flow generation capabilities. While the company acknowledges that future dividend declarations are at the discretion of the Board and subject to various financial factors, the increase suggests a commitment to returning capital to shareholders. Investors should note that the press release containing this information is furnished and not deemed 'filed' for regulatory liability purposes.
Key Highlights
- 1Seagate Technology plc (STX) announced a 26% increase in its targeted regular cash dividend.
- 2The annual dividend will rise from $1.72 per share to $2.16 per share.
- 3The dividend will continue to be paid quarterly.
- 4The first payment at the new quarterly rate of $0.54 per share is scheduled for November 25, 2014.
- 5Record date for the new quarterly dividend payment is November 11, 2014.
- 6The increase reflects management's confidence in the company's financial position and cash flow.
- 7All future dividend declarations remain at the discretion of the Board of Directors.