Dividends are going to be on the upswing at CBS, and so are share buybacks. It turns out the $1.7B already spent on the latter project is just the beginning.
The company’s board of directors has given the go-ahead to spend an additional $3B, up from $1.5B of previously approved buyback funding and bringing the total to $4.7B. The target date to complete the buyback is 12/31/14, and the target issue is CBS Corporation Class B common stock.
Meanwhile, dividends will be increasing by 20% to $0.12 per share per quarter. The next distribution is scheduled for 10/1/12. There is plenty of time to get in on the bounty – the next round of dividends will go to shareholders of record as of 9/10/12.
Analyst Marci Ryvicker gave the move the Wells Fargo Securities stamp of approval. She said, “Bottom line, we view this announcement as a clear positive. To us, today’s announcement is a clear signal of management’s enhanced comfort in its visibility with regards to business trends despite the macro environment and more importantly underlines the defensiveness of CBS’ business model.”
