U.S. Markets closed

Symantec sees 50% return of free cash flow to holders with repurchase, dividends

Symantec announced an enhanced capital allocation strategy that over time is expected to return approximately 50% of free cash flow to shareholders through a combination of dividends and share repurchases while still enabling the company to invest in its future. The company's capital allocation program includes initiation of a quarterly cash dividend, subject to declaration by the board of directors, targeting a yield of approximately 2.5% based on Symantec's closing stock price of $20.86 on January 22. The first payment is expected to occur in the June 2013 quarter. This will be the first cash dividend paid to shareholders in the company's history. The board has also authorized a $1B share repurchase program commencing in the company's fiscal year 2014, which begins on March 30, in addition to the remaining $283M in the current board authorized stock repurchase plan. Symantec will continue to buy back its shares opportunistically.