Discover the 15 companies that announced stock buyback programs last quarter, Q4 FY 2023
Dividends
January 11, 2024
Visa recently announced a substantial boost to its quarterly cash dividend, marking a 16% increase from 45 cents to 52 cents. This decision reflects Visa's commitment to rewarding its investors and comes on the heels of its robust fourth-quarter results. With a yearly payout of $2.08, the dividend yields 0.88%, showcasing Visa's dedication to providing attractive returns.
Furthermore, Visa has taken a proactive stance on capital management by greenlighting a multiyear $25 billion share buyback program. This move signifies Visa's confidence in its financial health and growth prospects. The authorization is a testament to Visa's commitment to optimizing its capital structure and leveraging excess cash for the benefit of its shareholders.
Visa Inc. is a global payments technology company, renowned for operating VisaNet, a processing network facilitating authorization, clearing, and settlement of payment transactions. Visa plays a pivotal role in fostering commerce by facilitating the transfer of value and information among consumers, merchants, financial institutions, businesses, and government entities. In addition to its card products, Visa offers value-added services under various brands, including Visa, Visa Electron, Interlink, V PAY, and PLUS. Established in 1958 and headquartered in San Francisco, California, Visa Inc. has forged strategic partnerships with entities like NovoPayment and Intuit Inc., expanding its digital solutions deployment in Latin America and the Caribbean.
Linde plc recently made significant strides by announcing a quarterly dividend of $1.275 per share, scheduled for payment on December 18, 2023. Notably, Linde's Board of Directors didn't stop there; they greenlit a new stock buyback program, authorizing the buyback of up to $15 billion of Linde's ordinary shares. This move builds upon the existing repurchase authority of $2 billion from the earlier buyback program initiated in February 2022, giving Linde a substantial $17 billion allocation for stock repurchases.
Linde's Chief Executive Officer, Sanjiv Lamba, shed light on the rationale behind this bold initiative, emphasizing Linde's commitment to maintaining its current investment-grade rating. Lamba stated, "Our capital allocation mandate is to maintain our current investment-grade rating and continue our track record of annually increasing the dividend. Our first line of priority is to invest in high-quality growth opportunities, and any surplus cash will be deployed to shareholders through a stock buyback program."
Linde plc operates as an industrial gas company in North and South America, Europe, the Middle East, Africa, and the Asia Pacific. Linde offers oxygen, nitrogen, argon, rare gases, carbon monoxide, carbon dioxide, helium, hydrogen, electronic gases, specialty gases, and acetylene. It also designs and constructs turnkey process plants, such as olefin, natural gas, air separation, and hydrogen and synthesis gas plants. Linde serves healthcare, petroleum refining, manufacturing, food, beverage carbonation, fiber-optics, steel making, aerospace, chemicals, and water treatment industries. Linde plc was founded in 1879 and is based in Guildford, the United Kingdom.
Mastercard Incorporated has recently greenlit a substantial stock buyback initiative. With its Board of Directors declaring a 16 percent increase in the quarterly cash dividend, now standing at 66 cents per share, investors are undoubtedly in for a treat. The cash dividend, scheduled for disbursement on February 9, 2024, reflects Mastercard's commitment to rewarding its shareholders.
Notably, Mastercard's Board of Directors has gone a step further by authorizing a new stock buyback program, setting aside a staggering $11 billion for the purpose. This decision follows the completion of Mastercard's earlier $9 billion program in December 2022, leaving a remaining balance of approximately $3.5 billion as of December 1, 2023.
Mastercard Incorporated is a global technology company specializing in transaction processing and payment-related products and services. With a presence in the United States and internationally, Mastercard facilitates payment transactions through authorization, clearing, and settlement processes. Mastercard provides integrated solutions for account holders, merchants, financial institutions, businesses, governments, and other organizations. Their offerings include credit programs, prepaid payment programs, commercial payment solutions, and value-added services such as cybersecurity, intelligence products, and consulting services. Founded in 1966 and headquartered in Purchase, New York, Mastercard is a leading provider of innovative payment solutions under the brands MasterCard, Maestro, and Cirrus.
Netflix showcased robust Q3 financial performance, reporting revenue of $8.5B, surpassing forecasts. Notably, Netflix experienced a 9% YoY growth in average paid memberships, driven by the successful rollout of paid sharing, steady programming, and global streaming expansion. Despite industry challenges, such as writers and actors strikes, Netflix demonstrated resilience, achieving a 22.4% operating margin. Q3 operating income reached $1.9B, surpassing expectations, and earnings per share stood at $3.73.
A noteworthy strategic move was Netflix's decision to repurchase $2.5B in shares during Q3, coupled with an increased buyback authorization of $10B. This decision aligns with Netflix's commitment to enhance shareholder value. The move comes amidst positive projections, with a forecasted Q4 revenue of $8.7B, representing an 11% YoY growth. Netflix continues to invest in a diverse content portfolio, featuring acclaimed originals like "One Piece" and licensed titles such as "Suits," anticipating sustained global engagement.
Netflix's dynamic approach extends beyond content creation to monetization strategies. With a focus on paid sharing, pricing adjustments, and the burgeoning ads business (showing a 70% QoQ growth in ad membership), Netflix is diversifying revenue streams. As the streaming giant expands its global footprint, with over 70% of members now outside the US, it emphasizes localization with successful titles like "Sintonia S4" in Brazil and "Dear Child" in Germany.
Despite challenges like strikes impacting content spend, Netflix remains optimistic about its financial trajectory, projecting FY23 free cash flow of approximately $6.5B. Netflix's commitment to environmental, social, and governance initiatives is underscored by the appointment of Ambassador Susan E. Rice to its Board of Directors. With a strong foundation and a compelling content slate, Netflix anticipates continued growth, illustrating its ability to navigate industry dynamics and deliver value to shareholders.
Netflix, Inc. is a global subscription streaming service founded in 1997 and headquartered in Los Gatos, California. With approximately 167 million paid members spanning 190 countries, Netflix offers a diverse array of TV series, documentaries, and feature films in multiple languages and genres. Netflix allows members to access streaming content on various Internet-connected devices, including TVs, digital video players, set-top boxes, and mobile devices, while also providing DVDs-by-mail membership services.
General Motors is strategically positioning itself to rebound in 2024 after a challenging period marked by labor strikes and setbacks in its electric and autonomous vehicle plans. General Motors, under the leadership of CEO Mary Barra, is implementing investor-focused initiatives to restore confidence. This includes a 33% increase in the quarterly dividend to 12 cents per share, an accelerated $10 billion stock buyback program, and a reinstatement of the 2023 guidance, factoring in a $1.1 billion impact from recent U.S. labor strikes.
Barra emphasizes a long-term plan focused on reducing business capital intensity, enhancing product development efficiency, and lowering fixed and variable costs. Despite facing increased costs due to new labor deals, GM aims to offset them by optimizing capital spending and delaying certain products, particularly in the electric vehicle (EV) segment.
General Motors's commitment to electric vehicles remains strong, with plans to achieve low- to mid-single-digit EBIT-adjusted margins on its EV portfolio by 2025 and an exclusive shift to electric vehicles by 2035. However, challenges at Cruise, GM's autonomous vehicle subsidiary, have led to decreased spending for 2024. Cruise's recent voluntary recall and operational suspension reflect a focus on safety, transparency, and accountability.
In a move to bolster investor confidence, GM authorized a $10 billion stock buyback, immediately retiring $6.8 billion worth of common stock. The buyback, initiated due to accumulated cash reserves during labor uncertainty, aims to maintain credit ratings while showcasing financial resilience. GM expresses confidence in its strategies, having returned $4.2 billion in common stock dividends and buybacks since 2022, with $1.4 billion capacity for additional repurchases. As GM heads into 2024, Barra is optimistic about executing the plan and looks forward to sharing progress with stakeholders.
General Motors Company, founded in 1908 and headquartered in Detroit, Michigan, is a global automotive leader that designs, manufactures, and sells a diverse range of vehicles and automobile parts. Operating through segments like GM North America, GM International, Cruise, and GM Financial, General Motors markets vehicles under well-known brand names such as Buick, Cadillac, Chevrolet, GMC, Holden, Baojun, and Wuling. In addition to retail sales, General Motors supplies vehicles to various customer segments, including rental companies, commercial fleets, leasing companies, and governments. General Motors also offers safety and security services, connected services, and automotive financing, while embracing innovative technologies to enhance the driving experience for consumers worldwide.
The Cigna Group recently greenlit a substantial $10 billion increase in its stock buyback authorization, elevating the total to an impressive $11.3 billion. This decision underscores Cigna's confidence in its market position and a belief that its shares are undervalued. David M. Cordani, the Chairman and CEO of The Cigna Group, expressed this sentiment, emphasizing that the repurchases are viewed as a value-enhancing allocation of capital.
Cigna plans to deploy the majority of its discretionary cash flow for stock buybacks in 2024, with an initial target of repurchasing at least $5 billion of common stock by the end of the first half of 2024. Notably, a portion of this initiative will be executed through an accelerated stock buyback program scheduled for the first quarter of 2024. Cordani highlighted the commitment to financial discipline, aiming for strategic acquisitions and value-driven divestitures aligned with their overall business strategy.
This move aligns with Cigna's outlook for the future, reaffirming its full-year 2023 consolidated adjusted income from operations on a per-share basis of at least $24.75 and targeting a per-share basis of at least $28 for full-year 2024. Cordani, reflecting on Cigna's consistent execution over the past decade, expressed confidence in achieving their long-term annual adjusted EPS growth target of 10-13%. This shareholder-focused approach, combined with a clear strategic vision, positions The Cigna Group for sustained growth and value creation in the coming years.
Cigna Corporation, established in 1792 and headquartered in Bloomfield, Connecticut, is a global provider of insurance and related services, operating across various segments. The Health Services segment offers pharmacy benefits management, clinical solutions, and health management services. The Integrated Medical segment provides a range of medical, dental, vision, and behavioral health services to insured and self-insured clients, including Medicare Advantage and Medicaid plans. In International Markets, Cigna offers supplemental health, life, and accident insurance globally. The Group Disability and Other segment focuses on group insurance products and related services. Cigna distributes its offerings through various channels, including insurance brokers, consultants, and direct-to-consumer channels, with strategic alliances to enhance accessibility to health care coverage.
RTX recently greenlit a $10 billion stock repurchase program following robust quarterly earnings. Despite grappling with a significant quality crisis in its Pratt and Whitney engine unit due to microscopic contaminants, the aerospace giant reported an adjusted profit of $1.25 per share for Q3, surpassing Wall Street estimates. The contamination issue prompted the accelerated inspection of 200 Geared Turbofan engines, with a subsequent expansion to 700 engines for comprehensive quality checks. However, Neil Mitchill, the Chief Financial Officer, reassured investors that RTX doesn't anticipate a substantial additional financial or operational impact.
While Pratt and Whitney faced a $2.48 billion operating loss in the quarter due to engine recalls and compensations, RTX's Collins Aerospace unit demonstrated resilience with a 22% profit increase to $903 million. RTX's optimistic outlook for 2023, forecasting higher free cash flow and adjusted sales, underscores its confidence in overcoming the challenges posed by the engine quality crisis. Moreover, RTX is streamlining its portfolio by divesting its Cybersecurity, Intelligence, and Services business for approximately $1.3 billion, aligning with its strategic focus and contributing to its positive trajectory.
Raytheon Technologies Corporation, a global aerospace and defense company headquartered in Waltham, Massachusetts, operates in four main businesses: Collins Aerospace Systems, Pratt & Whitney, Raytheon Intelligence & Space, and Raytheon Missiles & Defense. Specializing in advanced systems and services, RTX caters to commercial, military, and government clients worldwide. Collins Aerospace Systems focuses on aerostructures, avionics, and various systems for aviation sectors, while Pratt & Whitney designs and services aircraft engines for diverse applications. Raytheon Intelligence & Space specializes in sensor development, training, and cyber solutions, and Raytheon Missiles & Defense produces a range of advanced technologies, including defense systems, precision weapons, radars, and command and control systems.
Expedia Group, Inc. has just greenlit a bold move to enhance shareholder value, announcing a $5 billion stock buyback authorization for its common stock. This decision, spearheaded by Peter Kern, Vice Chairman and CEO, signifies Expedia's unwavering confidence in its long-term prospects and robust cash-generating capabilities. The move also underlines Expedia Group's commitment to optimizing returns for its shareholders.
Expedia Group, Inc. is a global online travel company operating in four segments: Core Online Travel Agencies, Trivago, Vrbo, and Egencia. With a diverse brand portfolio including Expedia, Hotels.com, Vrbo, and Egencia, Expedia offers a range of travel services, from full-service online travel and lodging accommodations to corporate travel management. Expedia Group also provides digital marketing solutions through Expedia Group Media Solutions and operates platforms such as trivago, an online hotel metasearch platform, and Expedia Local Expert, offering concierge services and ground transportation. Originally founded in 1996 as Expedia, Inc., Expedia rebranded to Expedia Group, Inc. in March 2018 and is headquartered in Seattle, Washington.
Phillips 66, a leading diversified energy company, revealed impressive third-quarter results, showcasing its commitment to strategic priorities outlined in 2022. CEO Mark Lashier emphasized Phillips 66's exceptional operational performance and cost-effective measures, resulting in a significant boost in earnings and cash generation. Notably, Phillips 66 is surpassing its initial strategic targets, with a focus on refining, midstream, chemicals, and marketing and specialties.
A standout development is Phillips 66's authorization of an additional $5 billion for stock buybacks, reinforcing its dedication to shareholder value. This move, coupled with a remarkable $6.7 billion returned through stock buybacks and dividends since July 2022, signifies Phillips 66's confidence in its financial strength and positive market conditions. The decision to increase the stock buyback target to a range of $13 billion to $15 billion further underlines Phillips 66's commitment to rewarding shareholders.
The authorization aligns with Phillips 66's broader business transformation goals, targeting over $1 billion in run-rate cost and capital reductions by the end of 2023. With a renewed focus on returning at least 50% of operating cash flow to shareholders, Phillips 66 is setting a robust foundation for sustained growth and value creation. This strategic move, combined with plans to monetize non-core assets, positions Phillips 66 for continued success and increased shareholder returns.
Phillips 66, established in 1875 and headquartered in Houston, Texas, operates as a leading energy manufacturing and logistics company with four key segments: Midstream, Chemicals, Refining, and Marketing and Specialties (M&S). The Midstream segment handles the transportation of crude oil and other feedstocks, storage services, and the processing and marketing of natural gas. In the Chemicals segment, Phillips 66 manufactures and markets a range of products, including ethylene, olefins, aromatics, and specialty chemicals. The Refining segment refines crude oil into various petroleum products at 13 refineries in the United States and Europe. The M&S segment focuses on the purchase, resale, and marketing of refined petroleum products, as well as the production of specialty items like petroleum coke, waxes, solvents, and polypropylene.
Centene Corporation is gearing up for a robust 2024, as outlined in its recent investor day. Centene's strategic plan, focused on delivering long-term shareholder value, has seen significant progress this year. CEO Sarah M. London expressed confidence in Centene's ability to provide access to high-quality healthcare for more Americans while making it affordable. The revised 2024 outlook boasts an adjusted diluted EPS of "greater than $6.70," showcasing positive operational momentum and strong execution against their plan.
In tandem with its financial guidance, Centene's Board of Directors has greenlit a $4.0 billion increase to the stock repurchase program, supplementing the existing authorization of approximately $1.2 billion. This move signals Centene's commitment to enhancing shareholder value by investing in its own shares. The decision to authorize a stock buyback aligns with Centene's overall strategy and the confidence it has in its future prospects.
Analysts and investors are likely to view this as a bullish move, indicating Centene's belief in its undervalued stock and a strategic allocation of resources. As Centene positions itself for a robust 2024, the stock buyback authorization adds an extra layer of optimism for investors eyeing long-term growth opportunities in the healthcare sector.
Centene Corporation, established in 1984 and headquartered in St. Louis, Missouri, is a leading multinational healthcare enterprise specializing in providing comprehensive programs and services to under-insured and uninsured individuals in the United States. Operating through its Managed Care segment, Centene offers health plan coverage, including Medicaid, the State Children's Health Insurance Program, long-term services and support, foster care, and Medicare-Medicaid plans. Centene delivers a wide array of healthcare services, such as primary and specialty physician care, hospital care, emergency services, telehealth, pharmacy benefits management, and behavioral health services. Additionally, its Specialty Services segment offers triage, wellness, disease management services, vision and dental care, and care management software to diverse clients, including state programs, correctional facilities, healthcare organizations, and employer groups. Centene Corporation also collaborates with AT&T to enhance its service offerings.
Hilton Worldwide Holdings Inc. has greenlit a substantial stock buyback initiative. The Board of Directors recently gave the nod for the repurchase of an additional $3.0 billion of common stock, pushing the total authorized amount for future buybacks to around $4.2 billion. This decision underscores Hilton's commitment to leveraging its robust financial position to bolster investor confidence.
Hilton Worldwide Holdings Inc., a leading hospitality company established in 1919 and headquartered in McLean, Virginia, specializes in owning, leasing, managing, developing, and franchising hotels and resorts worldwide. With a diverse portfolio of well-known brands such as Waldorf Astoria Hotels & Resorts, Conrad Hotels & Resorts, Hilton Hotels & Resorts, and others, Hilton operates in regions spanning North America, South America, Central America, the Caribbean, Europe, the Middle East, Africa, and the Asia Pacific. As of February 21, 2020, Hilton Worldwide boasted approximately 6,100 properties, encompassing roughly 971,000 rooms across 119 countries and territories.
Kraft Heinz, a global food and beverage giant, recently made a strategic move by authorizing a $3 billion stock buyback program, extending through December 26, 2026. This decision, approved by the Board of Directors, reflects Kraft Heinz's confidence in its financial position and successful transformation efforts. The announcement comes on the heels of Kraft Heinz achieving its targeted Net Leverage of approximately 3.0x in the third quarter, marking a significant milestone in its ongoing transformation.
Miguel Patricio, CEO and Chair of the Board at Kraft Heinz, highlighted Kraft Heinz's robust balance sheet and advancements across various business aspects as key factors contributing to the decision. He emphasized that the stock buyback program aligns with Kraft Heinz's commitment to delivering profitable growth and driving strong returns for its shareholders. The move also underscores Kraft Heinz's belief that its own shares represent an attractive investment opportunity.
The Kraft Heinz Company, established in 1869 and headquartered in Pittsburgh, Pennsylvania, is a global leader in the manufacturing and marketing of food and beverage products. Operating in the United States, Canada, the United Kingdom, and internationally, Kraft Heinz offers a diverse range of products, including condiments, sauces, cheese, dairy, meals, meats, seafood, frozen and chilled foods, beverages, coffee, snacks, infant nutrition, and various grocery items. Some of its well-known brands include Kraft, Oscar Mayer, Heinz, Philadelphia, Velveeta, Planters, Maxwell House, Capri Sun, and Ore-Ida. Kraft Heinz distributes its products through various channels, including its own sales organizations, brokers, agents, and distributors, serving a wide array of retail, wholesale, and foodservice outlets, as well as online through e-commerce platforms and retailers.
HSBC reported a robust profit after tax of $6.26 billion, surging 135% from the same period last year. The bank's profit before tax also climbed to $7.7 billion, attributed largely to a favorable interest rate environment. While these figures slightly missed economists' expectations, HSBC clarified that a $2.3 billion impairment tied to the planned sale of its French retail banking operations impacted the results. Notably, $2.1 billion of this impairment was reversed in Q1 2023 due to increased uncertainty about the transaction's completion.
Amid these financial dynamics, HSBC announced a third interim dividend of 10 cents per share and authorized a stock buyback of up to $3 billion, reinforcing its commitment to shareholder value. This buyback, part of a series totaling $7 billion in 2023, is expected to conclude by the full-year results announcement on Feb. 21, 2024. The move reflects HSBC's confidence in its substantial distribution capacity and ongoing commitment to balancing growth investments with rewarding shareholders. Furthermore, the buyback is anticipated to have a 0.4 percentage point impact on the common equity tier 1 capital ratio, reaffirming HSBC's focus on financial resilience in line with European banking standards. As the bank continues to navigate global financial landscapes, these strategic financial moves position HSBC for a resilient and rewarding future.
HSBC Holdings plc is a global banking and financial services provider with a history dating back to 1865. Operating through Retail Banking and Wealth Management, Commercial Banking, Global Banking and Markets, and Global Private Banking segments, HSBC offers a wide range of products and services. These include personal banking products, wealth management services, commercial and investment banking solutions, as well as private banking services tailored for high net worth individuals and families. Headquartered in London, United Kingdom, HSBC serves a diverse client base worldwide, ranging from individuals to small and medium-sized enterprises, mid-market enterprises, corporates, and institutional clients.
Vertiv, a global leader in critical digital infrastructure solutions, recently held its Investor Conference, shedding light on its vision, strategy, and financial performance. Vertiv's management outlined accelerated growth opportunities and announced a significant move—the Board of Directors has authorized a stock buyback program, allowing Vertiv to repurchase up to $3 billion of common stock over the next four years. This decision reflects Vertiv's commitment to providing flexibility in returning capital to shareholders.
The stock buyback program is poised to be executed through various channels, including open market purchases and negotiated transactions. Vertiv's Board emphasizes that the timing and extent of repurchases will be discretionary, influenced by factors such as stock price, financial outlook, and available liquidity. Importantly, the authorization doesn't impose an obligation to repurchase a specific amount, and the Board retains the flexibility to modify, suspend, or discontinue the program as needed.
Alongside this strategic move, Vertiv declared an increased annual cash dividend for 2023, reinforcing its commitment to delivering value to shareholders. Vertiv's positive outlook is further substantiated by an upward revision in its 2023 financial guidance, driven by robust market demand for its critical digital infrastructure products and services. These developments position Vertiv as a solid contender in the evolving landscape of digital infrastructure, making it a company worth keeping a close eye on in the coming quarters.
Vertiv Holdings Co is a global leader in mission-critical infrastructure technologies and life cycle services, catering to data centers, communication networks, and diverse commercial and industrial environments across the Americas, Asia Pacific, Europe, the Middle East, and Africa. Specializing in power and thermal management products, integrated rack systems, modular solutions, and digital infrastructure management systems, Vertiv plays a crucial role in supporting essential services such as e-commerce, online banking, video on-demand, and the Internet of Things. Vertiv also offers lifecycle management services, predictive analytics, and professional services, serving industries such as social media, finance, healthcare, transportation, retail, education, and government. Headquartered in Columbus, Ohio, Vertiv is at the forefront of delivering and optimizing critical infrastructure solutions worldwide.
ING Groep N.V. has greenlit a substantial share buyback programme, signaling confidence in its current standing and future prospects. The financial giant plans to repurchase ordinary shares totaling up to €2.5 billion, aligning with its commitment to achieve a CET1 ratio around 12.5%, as outlined in its Investor Update back in June 2022.
As of the end of the third quarter of 2023, ING Group boasts an impressive CET1 ratio of 15.2%, comfortably surpassing the required 10.98%. The buyback initiative is anticipated to exert an impact of approximately 78 basis points on the CET1 ratio. Commencing on November 3, 2023, and concluding no later than April 19, 2024, the program has gained the green light from the European Central Bank and is set to be executed meticulously, adhering to the Market Abuse Regulation and within the confines of ING's authority to acquire a maximum of 10% of issued shares, as endorsed by shareholders in April 2023.
ING Groep N.V. is a financial institution founded in 1991, headquartered in Amsterdam, the Netherlands. Operating globally, it provides a range of banking products and services to individuals, small and medium-sized enterprises, and mid-corporates. ING's offerings include various deposit accounts, business and consumer lending products, as well as mortgage, payment, savings, investment, and insurance services. With a presence in Retail Netherlands, Retail Belgium, Retail Germany, Retail Other, and Wholesale Banking segments, ING Groep N.V. also specializes in corporate finance, debt and equity markets solutions, working capital, cash management, and trade and treasury services across multiple regions, including North America, Latin America, Asia, Australia, and the rest of Europe.
Some data was sourced from LevelFields.AI
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