CBOE Holdings, Inc. (NASDAQ: CBOE) announced today that its Board of Directors has approved a 17-percent increase in the Company's quarterly cash dividend and, effectively immediately, a $100 million-increase in its stock repurchase authorization.
The cash dividend will increase to $0.21 from $0.18 per share of common stock and is effective with the third quarter dividend, payable September 19, 2014, to stockholders of record at the close of business on August 29, 2014.
The company's Board of Directors also authorized the company to repurchase an additional $100 million of its outstanding common stock. This is in addition to any unused amount remaining under prior authorizations, under which approximately $50 million remained available as of July 30, 2014. The new authorization brings the total amount available for stock repurchases to approximately $150 million as of July 30, 2014. The company had approximately 85.2 million shares of common stock outstanding at July 30, 2014.
"Consistent with our commitment of returning capital to our stockholders, we are pleased to increase our quarterly cash dividend and stock repurchase authorization," said CBOE Holdings Chief Executive Officer Edward T. Tilly. "Our business continues to generate strong operating cash flow, enabling us to continue to invest in our strategic growth opportunities, while also returning capital to stockholders."
The stock repurchase program has no expiration date. The repurchase program permits the company to purchase shares through a variety of methods, including in the open market or through privately negotiated transactions, in accordance with applicable securities laws. It does not obligate the corporation to make any repurchases at any specific time or situation. The timing and extent to which the company repurchases its shares will depend upon, among other things, market conditions, share price, liquidity targets, regulatory requirements and other factors. Share repurchases may be commenced or suspended at any time or from time to time without prior notice.