Subscriber login Close [x]
remember me
You are not logged in.

Brown-Forman raises its dividend, continuing strong performance

Published:  21 November, 2014

Brown-Forman shows little signs of slowing down following the "most successful year" in the company's history, announcing yesterday that it would be increasing its quarterly cash dividend by 8.6% to $0.315 per share.

Brown-Forman shows little signs of slowing down following the "most successful year" in the company's history, announcing yesterday that it would be increasing its quarterly cash dividend by 8.6% to $0.315 per share.

Paul Varga, chief executive of Brown-Forman said, "This dividend increase marks the 31st consecutive year of increases at the company, and reflects our commitment to delivering top-tier returns for our shareholders. In addition to returning cash to shareholders through our dividend program, the company also implemented a new buyback program in October, and is aggressively investing behind the long-term global growth of our American whiskey brands."

Last month Brown-Forman's board of directors authorised another $250 million share repurchase program that started on October 15, 2014 and will run through October 14, 2015. This is the second consecutive year the board has authorised a programme to buy back outstanding Class A and Class B common stock. The previous repurchase programme, which ended in September 2014, also authorised up to $250 million to buy back shares.

"We have been executing well on our long-term growth strategy and remain committed to delivering top-tier returns for our shareholders. Our balance sheet strength and substantial free cash flow allow the company to invest in organic growth while also returning capital to shareholders through ongoing share repurchase and dividend programs," said Vagra.

The company also announced at the end of September it would be investing in the opening of a distillery and bourbon experience for its founding bourbon whiskey brand, Old Forrester. The distillery, which will double production capacity for Old Forrester, and visitor centre is expected to cost $30 million and open in autumn 2016.

The ongoing buy back programme and the large infrastructural investments the company is making will help to bolster shareholder value and help the company to grow organically.The stock is up 26.25% from a year ago.

Brown-Forman, owner of the Jack Daniel's whiskey brand, will announce its second quarter earnings on December 3, 2014.

Keywords: