Summary
Western Digital Corporation (WDC) announced a quarterly cash dividend and an expanded share repurchase program on February 3, 2015. The company declared a cash dividend of $0.50 per share for the quarter ending April 3, 2015, payable on April 16, 2015. This signals a commitment to returning capital to shareholders. In addition to the dividend, the Board of Directors authorized an additional $2.0 billion for share repurchases. This substantial authorization, effective immediately, demonstrates management's confidence in the company's financial position and its belief that repurchasing shares is an attractive use of capital. Combined with the remaining $384 million from prior authorizations, this provides significant flexibility for capital allocation.
Key Highlights
- 1Declaration of a $0.50 per share cash dividend for the quarter ending April 3, 2015.
- 2The dividend payment date is set for April 16, 2015, with a record date of April 3, 2015.
- 3Authorization of an additional $2.0 billion for share repurchases of common stock.
- 4The new share repurchase authorization is effective immediately.
- 5Approximately $384 million remained under prior share repurchase authorizations as of February 2, 2015.
- 6Share repurchases can be made through open market or privately negotiated transactions, including Rule 10b5-1 plans.
- 7The company's dividend policy and share repurchase program are subject to various factors including financial performance, cash flows, capital needs, and credit agreement restrictions.