Symantec Corp. (Nasdaq: SYMC) has announced an enhanced capital allocation strategy that is expected to return approximately 50% of free cash flow to shareholders over time, according to a company statement.
“A dividend program is a sign of the confidence we have in our just announced strategy and operational plan to accelerate organic growth, ” said Steve Bennett, Symantec president and CEO.
The new strategy would enable Symantec to invest in its future, while providing shareholders a combination of dividends and share repurchases.
This new capital allocation program includes initiation of a quarterly cash dividend subject to declaration by the board of directors, the company said.
Symatec expects to make its first cash dividend payment to shareholders at the end of the second quarter and will be
based on Symantec’s closing stock price of $20.86 as of Jan. 22, 2013.
James Beer, Symantec’s executive vice president and chief financial officer, said the initiation of a dividend and a renewed share repurchase shows the company’s confidence in its long-term business outlook.
Beginning March 2013, Symantec will implement a $1 billion share repurchase program in addition to the remaining $283 million in the current board authorized stock repurchase plan.