The Company today announced that its board of directors declared a 16.95 percent increase in its quarterly dividend to $0.69 per share. "As a testament to our commitment to create value for our shareholders, the board has increased the dividend for the seventh consecutive year," said Craig Menear, chairman, CEO and president.
The dividend is payable on March 24, 2016, to shareholders of record on the close of business on March 10, 2016. This is the 116th consecutive quarter the Company has paid a cash dividend.
Combined with today's announcements, the Company reiterated its capital allocation principles:
- Dividend Principle: Targeting a dividend payout ratio of approximately 50 percent of net earnings.
- Share Repurchase Principle: After meeting the needs of the business, use excess cash to repurchase shares, with the intent of completing its remaining $11.0 billion share repurchase authorization by the end of fiscal 2017.
- Return on Invested Capital Principle: Maintain a high return on invested capital, with a goal of reaching 35 percent by the end of fiscal 2018.
Read the full press release statement here.