Allison Transmission Boosts Dividend and Stock Repurchase Plans
Allison Transmission Increases Quarterly Dividend
Allison Transmission Holdings Inc. (NYSE: ALSN), a premier designer and manufacturer of vehicle propulsion solutions, has made a notable announcement regarding its financial strategies. The company’s Board of Directors has approved an increase in the quarterly dividend for its common stock, moving up from $0.25 to $0.27 per share. This adjustment underlines Allison's dedication to enhancing shareholder value.
Commitment to Shareholders
Fred Bohley, the Chief Operating Officer and Chief Financial Officer of Allison, emphasized the significance of this increase, stating, "For the sixth consecutive year, Allison's Board of Directors has approved an increase to the quarterly dividend." This consistent return of capital illustrates the company's robust financial performance and strategic capital management.
Future Dividend Considerations
While this announcement includes a defined cash dividend for the upcoming quarter, the Board reserves the discretion to determine future dividend payments based on various factors. Key considerations include the company's overall financial health, cash flow, and capital requirements, ensuring that dividends remain sustainable and reflective of Allison's operational success.
Stock Repurchase Program Expansion
In addition to the dividend increase, Allison Transmission has also approved a significant enhancement to its stock repurchase program, allowing for an additional $1 billion in repurchases. This new authorization raises the total amount allocated to the program to an impressive $5 billion.
Guidelines for Stock Repurchases
The company's strategy for repurchasing shares includes various methods such as open market transactions and privately negotiated trades. The timing and amount of shares repurchased will depend on overall market conditions and corporate strategies. Additionally, the company may utilize Rule 10b5-1 plans to facilitate these repurchases, making it a flexible approach to managing their stock buyback initiatives.
Annual Stockholders Meeting
Furthermore, Allison Transmission announced its annual stockholders meeting for 2025, scheduled for May 7. Stockholders must ensure they are recorded as such by March 10 to participate in this important event.
About Allison Transmission
Founded in 1915, Allison Transmission (NYSE: ALSN) specializes in creating leading-edge propulsion solutions for a wide range of commercial and defense vehicles. The company's innovative products are essential for diverse applications, including distribution, construction, and emergency services. Allison's footprint spans more than 150 countries, with manufacturing sites located in various parts of the world, ensuring its products enhance efficiency and performance globally.
Frequently Asked Questions
What is the new quarterly dividend amount for Allison Transmission?
The new quarterly dividend amount is $0.27 per share, increased from $0.25.
When will the dividend be paid?
The cash dividend for the first quarter of 2025 will be paid on March 14 to stockholders of record as of March 3.
How much has Allison Transmission authorized for stock repurchases?
The company has authorized an additional $1 billion for its stock repurchase program, bringing the total to $5 billion.
What factors influence future dividends?
Future dividends depend on Allison's financial position, cash flow, and capital requirements, as determined by the Board of Directors.
When is the annual meeting of stockholders?
The annual meeting will be held on May 7, 2025, with a record date of March 10.
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