Patterson Companies, Inc. Declares Dividend, Announces New Stock Buyback Program
PDCO Stock Returning Cash to Investors
As a medical supply distributor, Patterson Companies, Inc. (NASDAQ:PDCO) may not sound like a familiar name to most people. But over the years, the company has returned an enormous amount of cash to shareholders.
And it is continuing that track record. On Tuesday, March 13 after the closing bell, Patterson announced that its Board of Directors declared a quarterly cash dividend of $0.26 per share. The dividend will be paid on April 27, 2018 to shareholders of record as of April 13. (Source: “Patterson Companies Board Authorizes New Share Repurchase Program and Declares Quarterly Cash Dividend,” Patterson Companies, Inc., March 13, 2018.)
While the amount of the dividend is the same as PDCO stock’s previous payment, note that since the company initiated a dividend policy in 2010, it has raised its payout every single year by a total of 160%. (Source: “Stock Information,” Patterson Companies, Inc., last accessed March 13, 2018.)
Trading at $24.69 apiece, PDCO stock offers an annual dividend yield of 4.2%.
Mind you, paying a dividend is not the only way through which Patterson Companies returns value to investors. Patterson’s Board of Directors also authorized the company to repurchase up to $500.0 million’s worth of PDCO common stock through March 13, 2021. The new authorization will replace the previous program scheduled to expire on March 19, 2018.
“The new share repurchase plan and our quarterly dividend reflect the board’s continued confidence in Patterson’s future, bolstered by the strength of our end markets and our compelling value proposition,” remarked Patterson Chairman John D. Buck in a statement on Tuesday. “We are committed to a balanced allocation of capital, which includes returning cash to our shareholders.” (Source: “Patterson Companies Board Authorizes New Share Repurchase Program and Declares Quarterly Cash Dividend,” Patterson Companies, Inc., March 13, 2018.)
With the new program, Patterson Companies would reduce the number of shares outstanding, allowing each existing shareholder to own a slightly larger portion of the company.