"The board of Lorillard, Inc (LO) has authorized the repurchase of additional $500 million worth of shares, which will add to the existing share repurchase program of $500 million, announced in Mar, 2013. Lorillard now has the authorization to repurchase up to $1.0 billion worth of its shares. The authorization is expected to be completed through 2013.
In the recently reported first quarter, announced in Apr 2013, the cigarette manufacturer repurchased approximately 1 million shares at a cost of $40 million. Lorillard now has $960 million worth of shares remaining in its $1 billion share buyback program. Prior to this, Lorillard completed its $500 million share repurchase program at the end of Jan, 2013, announced earlier in Aug 2012."
That works out to over 5% of their outstanding shares by year end.
"In addition to Philip Morris, Renaissance also likes Lorillard (LO), increasing its stake in that cigarette company by 17% during 2013. Lorillard actually looks like an all-around attractive stock: its dividend yield is quite high, even considering its industry at 5% and there is something of a value case as well with a trailing P/E of 14. In addition, revenue grew by 6% in the first quarter of 2013 versus a year earlier (earnings growth was much higher, though we'd think that it would be difficult to continue to increase net margins over the next several years."
My order is in to buy more and I'm short put options that require me to buy at 42.5 per share. Buy "LO" and hold it for the dividend is my motto.