Dividends under this program are subject to a declaration of a dividend by the Board of Directors. Subject to this declaration, a quarterly dividend of $0.40 per share would be paid in September 2012 and implies an annual dividend rate of $1.60 per share. On an annual basis, this represents a cash outflow of over $100 million dollars resulting in a payout ratio of approximately 25% of our expected fiscal 2012 net earnings. This level represents a payout ratio of over 40% of the roughly $250 million per year of US cash flow that we generate. And we believe this is a prudent level of which to initiate such a policy.We believe that initiating a dividend at this level will be meaningful to our shareholders and provides sufficient financial possibility to continue making opportunistic share repurchases and bolt-on acquisitions. Accordingly our board has also approved a share repurchase authorization of 10 million shares. The decision to initiate a dividend and the payout level was given careful consideration. We listen to our shareholders in order to better understand their review of Energizer and how we can best deliver their value back to them.
Energizer Holdings' CEO Discusses F2Q12 Results - Earnings Call Transcript
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
Every recommendation goes through 3 layers of intense scrutinyquantitative, fundamental and technical analysisto maximize profit potential and minimize risk.
Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.