Publication: Investor's Business Daily, 31 Jan 2012
Software giant CA Technologies (CA) recently announced a huge lift in its shareholder payout. The company spiked its annual dividend to $1 a share, up from 20 cents a share. At the new rate, the company has a current yield of about 3.9%. The new yield is higher than the tech heavyweights listed above.
The increase in dividends is part of the CA's capital allocation program aimed at returning $2.5 billion to shareholders by 2014. CA will pay a quarterly dividend of 25 cents a share March 13 to shareholders of record Feb. 14. Investors need to buy the stock at least three days before the record date to be entitled to the payout.
Another part of CA's capital allocation program involves a stock buyback of up to $1.5 billion, which includes $230 million leftover under a prior repurchase program. The timing and number of shares repurchased will depend on market conditions.
