Tenneco (NYSE: TEN), announced today that its board of directors has approved a dividend program under which the company intends to pay a regular quarterly cash dividend to holders of its common stock.
Tenneco intends to pay a quarterly dividend of $0.25 per share on its common stock, representing a planned annual dividend of $1.00 per share. The initial dividend will be payable on March 23, 2017 to shareholders of record as of March 7, 2017. Future dividends will be subject to Board approval.
In addition, the board authorized the repurchase of up to $400 million of the company’s outstanding common stock over the next three years. This includes the remaining amount authorized under earlier repurchase programs.
“With a strong balance sheet and our growth and profitability plans delivering results, I am pleased that we have the flexibility within our capital allocation priorities to accelerate returns to our shareholders,” said Gregg Sherrill, chairman and CEO, Tenneco. “The dividend announced today demonstrates our confidence in Tenneco’s financial strength, future outlook and commitment to enhancing shareholder value.”
The company anticipates acquiring the shares through open market or privately negotiated transactions, which will be funded through cash from operations. The repurchase program does not obligate Tenneco to make repurchases within any specific time or situations, and opportunities in higher priority areas could affect the cadence of this program.