Northern, WI 02/07/2013 (wallstreetpr) – 3 M Co. (NYSE:MMM), a US based office supplies and building equipment maker is planning a share buyback. The Board of directors of the company, serving in diversified manufacturing operations authorized buyback scheme up to $ 7.5 billion in compliance with the exchange regulations. The news of the anticipated move has triggered an upsurge in its price from $101.5 to $102.70.
The company’s decision to pay an increased quarterly dividend this year, with a 7.6 % hike as compared to the last year, is another good news for investors and shareholders.
Analysts expect a further upsurge in the share price of the company within the forthcoming weeks as the planned date for book closure is approaching. For the purpose of ascertaining the shareholders’ entitlement, the company has announced the book closure on Feb 15th. Dividend worth 63.5 cents per share is planned to be paid on March 12th. The previous payout had been set at 59 cents a share.
With a new open ended buyback scheme authorized replacing a previous similar program of $ 7 billion, it is unpredictable as what quantum of shares is purchased in previous buyback, Jacqueline Berry, a 3M Co. (NYSE: MMM) spokeswoman said in her speech.
Together with a basic objective of Wealth maximization of shareholders & moving with a commitment of giving a good return to them, CEO Inge Thulin said that it is forecasting a bright company`s future.
3 M Co. (NYSE:MMM) which will be given a 20 % yearly return, is currently trading at its highest of $102.70 Feb 09, 2012 when it stood at $88.02. Feb 09, 2012 when it stood at $88.02. Growing with a continuous increase in its price, analysts are seeing a good return in short term together with its dividend payout.
Since last 3 months, the company has been able to recover from its price of $87.6, the day when it walked away from the deal to buy CCL Industries Inc. (TSE:CCLB).
The shares of 3 M Co. (NYSE:MMM) is down by 1.03% and currently trading at $101.65.