Curtiss-Wright Corporation (NYSE: CW) has announced a significant increase in its share repurchase authorization and an enhanced dividend payout. The company’s Board of Directors has approved an additional $300 million for share repurchases, bringing the total available authorization to $400 million. In addition, there will be a 5% increase in the quarterly dividend to twenty-one cents ($0.21) per share.
Lynn M. Bamford, Chair and CEO of Curtiss-Wright Corporation, emphasized the company’s commitment to rewarding its shareholders. With these measures, Curtiss-Wright aims to provide consistent returns and align its dividend growth with long-term sales performance. The Board of Directors’ decision reflects their confidence in the company’s strong financial position and ability to generate solid free cash flow. Curtiss-Wright maintains a disciplined capital allocation strategy that includes strategic acquisitions, operational investments, and returning capital to shareholders to drive long-term value.
Under its ongoing 10b5-1 program, the company plans to repurchase at least $50 million in shares for 2024. This initiative will offset any potential dilution resulting from compensation plans.
Curtiss-Wright Corporation is a global integrated business serving Aerospace & Defense markets, as well as Commercial Power, Process, and Industrial markets. With a dedicated workforce of approximately 8,600 highly skilled employees, the company excels in developing and delivering innovative, high-quality engineered solutions. Drawing on its rich heritage and strong customer relationships, Curtiss-Wright continues to create value for its customers.
For more information about Curtiss-Wright Corporation and its range of products and services, visit www.curtisswright.com.
Press Contact:
Jim Ryan
(704) 869-4621
[email protected]
View source version on businesswire.com: https://www.businesswire.com/news/home/20240510984455/en/
In addition to the information provided in the article, there are several facts and trends related to Curtiss-Wright Corporation’s share repurchase authorization and dividend increase:
1. Current Market Trends:
– Share repurchases have become increasingly popular among companies as a way to return capital to shareholders and potentially increase stock prices.
– Dividend increases have been a common strategy for companies to attract investors and provide a steady income stream.
– The aerospace and defense industry, in which Curtiss-Wright operates, has been experiencing growth due to increased defense spending and demand for advanced technology solutions.
2. Forecasts:
– With the additional $300 million share repurchase authorization, Curtiss-Wright is expected to continue repurchasing shares in the coming years, potentially leading to a reduction in outstanding shares and an increase in earnings per share.
– The 5% increase in the quarterly dividend indicates the company’s confidence in its future financial performance and potential for sustained dividend growth.
3. Key Challenges or Controversies:
– One key challenge for Curtiss-Wright may be managing its capital allocation strategy effectively by balancing strategic acquisitions, operational investments, and returning capital to shareholders.
– The company may face scrutiny or criticism from investors if its financial performance does not meet expectations or if the share repurchase program does not result in desired stock price appreciation.
Advantages of Curtiss-Wright’s share repurchase authorization and dividend increase include:
– Share repurchases may signal to investors that the company believes its stock is undervalued, potentially attracting more investors and boosting stock prices.
– Increased dividend payout provides shareholders with a higher return on their investment and can attract income-seeking investors.
Disadvantages of these measures include:
– The potential risk of using a significant portion of available capital for share repurchases, which may limit the company’s ability to pursue other growth opportunities or investments.
– The dividend increase may put additional pressure on the company’s cash flow and financial resources, especially if the expected sales performance does not materialize.
For more information about Curtiss-Wright Corporation and its range of products and services, please visit their official website: Curtiss-Wright Corporation.
Source: businesswire.com