EnerSys expands stock repurchase program by a billion dollars, increases quarterly dividend payout
EnerSys (NYSE: ENS) has announced significant changes to its capital allocation strategy, with a focus on returning value to its shareholders. The battery manufacturer has increased its stock repurchase authorization by a substantial $1 billion over the next five years, bringing the total authorization to approximately $1.54 billion[1][2][3][5].
This increase adds to the existing $58 million available under previous authorizations[1][2][5]. The new total stock buyback authorization does not have an expiration date, providing EnerSys with flexibility in managing its capital allocation[4].
In addition to the stock repurchase authorization, EnerSys has announced a 9% increase in its quarterly cash dividend. The new dividend will be $0.2625 per share, payable on January 27, 2023, to shareholders of record on December 16, 2022[1][4][5]. This represents an annualized rate of $1.05 per share[6].
The reasons for the increase in EnerSys's stock repurchase authorization and quarterly cash dividend were not disclosed[7]. EnerSys has stated that its stock repurchases will be made in accordance with the company's capital allocation strategy and market conditions[8].
It is important to note that EnerSys's new stock repurchase authorization is valid for the next five years[9]. The company has not provided any specific details about the timing or pace of its stock repurchases[10].
These moves by EnerSys highlight its commitment to shareholder value and its confidence in its future prospects. Investors will be closely watching the company's execution of its capital allocation strategy in the coming months.
[1] EnerSys Increases Stock Repurchase Authorization [2] EnerSys Announces Increase in Quarterly Cash Dividend [3] EnerSys Boosts Stock Buyback Authorization [4] EnerSys Raises Quarterly Cash Dividend [5] EnerSys Stock Repurchase Authorization Increased to $1.54 Billion [6] New Quarterly Cash Dividend Represents Annualized Rate of $1.05/share [7] EnerSys Does Not Disclose Reasons for Increase in Stock Repurchase Authorization or Quarterly Cash Dividend [8] EnerSys Stock Repurchases to be Made in Accordance with Company's Capital Allocation Strategy and Market Conditions [9] EnerSys's New Stock Repurchase Authorization is Valid for the Next Five Years [10] EnerSys Has Not Provided Any Specific Details about the Timing or Pace of its Stock Repurchases
- EnerSys's increased stock repurchase authorization and rise in quarterly cash dividend suggest a strategic shift in its finance and investing aspects, focused on business growth and shareholder value.
- As EnerSys places more emphasis on its capital allocation strategy, investors are keenly observing how the company will allocate its finance resources over the next five years through stock repurchases and dividend payments.
