Flowserve Corporation’s (FLS) board of directors recently authorized a replenished share buyback worth $500 million, reaffirming the company’s policy of returning capital to its shareholders. This apart, the company declared quarterly cash dividend of 16 cents a share, payable on Jan 9, 2015 to shareholders on record as of Dec 26, 2014.
In Feb 2013, the board had authorized a $750 million share buyback program out of which $196 million is still remaining as of Sep 30, 2014. Flowserve’s replenished stock repurchase authorization of $500 million also includes approximately $175 million from the previous $750 million buy-back plan authorized in 2013.
Flowserve has consistently returned capital to shareholders in the form of share repurchases and dividend. Notably, the company has been paying uninterrupted dividends since 2007.
The company’s current dividend yield stands at 0.97%. For the first nine months of 2014, Flowserve spent a total of $188.3 million on share repurchases. In the third quarter of 2014, the company repurchased 475,177 shares worth $35.3 million (at an average price of $74.19 a share).
On a separate note, Flowserve announced the acquisition of engineered vacuum and fluid pumps provider, SIHI Group B.V, from Netherlands-based private equity firm TBG Europe NV.
Flowserve has been consistently focusing on expanding and realigning its portfolio so as to improve both its aftermarket business and margins. The company has also been working toward streamlining and strengthening its business through strategic divestments and acquisitions.
Flowserve currently has a Zacks Rank #3 (Hold). Better-ranked players in the same sector include Barnes Group Inc. (B), The Babcock & Wilcox Company (BWC) and Middleby Corp. (MIDD). All three stocks hold a Zacks Rank #2 (Buy).
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