It was just last week that we had identified literally 25 big share buyback announcements from companies in the preceding two weeks. These companies were actually buying back the stock as well rather than the historic buybacks that are not required to spend a penny. It turns out that the trend for August remains. Many new buyback announcements have been announced and it seems like companies are unlocking cash to repurchase their shares in droves.
Some of the larger and more impacting buyback announcements have been made by the following companies: Principal Financial Group Inc. (NYSE: PFG); Progressive Waste Solutions Ltd. (NYSE: BIN); Cliffs Natural Resources Inc. (NYSE: CLF); Life Time Fitness Inc. (NYSE: LTM); AECOM Technology Corp. (NYSE: ACM); Forest Laboratories Inc. (NYSE: FRX); Interpublic Group of Companies, Inc. (NYSE: IPG); Myriad Genetics Inc. (NASDAQ: MYGN); Republic Services, Inc. (NYSE: RSG); Lorillard, Inc. (NYSE: LO); Newell Rubbermaid Inc. (NYSE: NWL); and TiVo Inc. (NASDAQ: TIVO).
By now you already know that the attitude of 24/7 Wall St. is that dividends offer better long-term value than buybacks. We have shown what the dividend yield is for each here, or we have shown that there is no dividend.
Principal Financial Group Inc. (NYSE: PFG) announced that its board of directors has authorized a share buyback plan for up to $200 million in common stock. This represents about 8.5 million shares at current prices when average daily volume is 2.7 million shares. Its market cap is about $7.4 billion. The dividend yield is roughly 2.3% as of today.
Progressive Waste Solutions Ltd. (NYSE: BIN), also referred to as BFI Canada, announced a buyback of up to 4 million shares of common stock. That is about $80 million at today’s price. The market cap is $2.5 billion and the average daily volume is about 428,000 shares. The dividend yield is listed as being about 2.5%.
Cliffs Natural Resources Inc. (NYSE: CLF) has announced the authorization to buy back up to 4 million shares, close to $300 million in total per today’s dollars. The market cap is nearly $11 billion and the average volume is 3.7 million shares. The company’s dividend yield is only 1.5%.