WHITE PLAINS, N.Y. (AP) -- Xylem Inc. said Wednesday that it is buying back up to $250 million of its own shares over the next three years.
The water treatment company, based in White Plains, N.Y., said that it is able to make this move thanks to strong cash generation and prudent use of its cash. The company has an estimated 185.3 million shares outstanding.
Xylem also declared a regular quarterly dividend of 11.64 cents per share, which is payable on Sept. 18 to shareholders of record as of Sept. 4.
Shares of the company increased 20 cents to $24.50 by midmorning, outpacing broader market gains. The stock nosedived 10 percent on July 30, after Xylem reported a 48 percent drop in its second-quarter profit. For the year to date, shares are down about 10 percent.