Enact Holdings Boosts Dividend and Unveils Major Buyback Plan
Enact Holdings Announces Dividend Increase and Share Buyback
Enact Holdings, Inc. (Nasdaq: ACT) has officially declared a quarterly dividend of $0.21 per common share, reflecting a significant 14% increase from the previous quarter's payout. This exciting news emphasizes Enact's dedication to returning value to its shareholders, with the dividend set to be distributed on a specified date to all shareholders on record.
Details of the Share Repurchase Program
In tandem with the dividend announcement, the company’s Board of Directors has sanctioned a new share repurchase program. This program allows Enact to buy back up to $350 million worth of its common stock. This new authorization is a complement to the existing $250 million repurchase initiative, of which a small portion remains unutilized. The strategic management of repurchase opportunities aims to enhance shareholder value further.
Commitment to Shareholder Value
Rohit Gupta, Enact’s President and Chief Executive Officer, remarked on the significance of these announcements, stating, "Our increased dividend and new share repurchase program reflect our continued commitment to creating value for our shareholders." Since the inception of the dividend program three years ago, Enact has successfully raised its quarterly dividend every single year, illustrating its robust financial performance and unwavering confidence in its business.
Strategic Repurchase Methodology
The newly authorized share buyback will be executed through various methods, including open market transactions and privately negotiated agreements. Enact may proceed with these repurchases following the guidelines set forth in relevant trading plans, allowing management flexibility in timing and amounts based on market and business conditions.
Opportunistic Approach
Enact has indicated that the execution of the repurchase program will be opportunistic. Decisions regarding share buybacks will consider a range of factors, including market conditions, share prices, capital availability, debt covenants, and regulatory requirements. This approach ensures that any repurchases are strategic and reflect Enact’s overall business objectives.
The Impact on Stakeholders
The ultimate goal of these initiatives is to reinforce Enact's status as a leading private mortgage insurance provider while fostering relationships with its key stakeholders. By enhancing dividends and implementing a robust buyback strategy, Enact not only focuses on rewarding current shareholders but also positions itself attractively for future growth in the mortgage insurance sector.
About Enact Holdings, Inc.
Operating since 1981, Enact Holdings, Inc. (Nasdaq: ACT) is a premier private mortgage insurance provider in the United States. Through its subsidiary, Enact Mortgage Insurance Corporation, the company aims to facilitate homeownership by partnering with lenders to deliver top-tier service, unparalleled underwriting expertise, and extensive risk management. This dedication to service excellence is geared toward making a positive difference in the lives of customers in varied communities.
Frequently Asked Questions
What is the new quarterly dividend amount declared by Enact Holdings?
The Board of Directors declared a quarterly dividend of $0.21 per common share.
How much is the new share repurchase program worth?
The new share repurchase program authorizes the buyback of up to $350 million of common stock.
What has been the trend in Enact's dividend payouts?
Enact has raised its quarterly dividend every year since its introduction three years ago.
What methods will Enact use to execute its share repurchase program?
The program will include open market purchases and privately negotiated transactions among others.
When can shareholders expect the dividend to be paid?
The dividend will be payable on a designated date to shareholders who are recorded prior to that day.
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