Acuity Brands Announces Increase in Quarterly Dividend and Increase in Share Repurchase Authorization
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Insights
The increase in quarterly dividend by Acuity Brands signifies a positive signal to the market, potentially indicating the company's strong cash flow and profitability. A higher dividend can attract income-focused investors and potentially boost the stock price. However, the increase should be weighed against the company's capital expenditure requirements and debt obligations to ensure that it is sustainable.
The authorization to repurchase additional shares is a bullish move, often reflecting management's belief that the stock is undervalued. It can also lead to earnings per share (EPS) accretion, as the reduction in the number of shares outstanding makes each remaining share represent a larger slice of the company's earnings. Nonetheless, this strategy should be analyzed in the context of the company's overall capital allocation strategy and long-term growth plans.
The decision by Acuity Brands to increase its dividend and repurchase shares could have implications for its position within the industrial technology sector. It's important to examine how these financial decisions align with industry trends, such as whether competitors are also returning capital to shareholders or investing in growth opportunities. The impact on market share and competitive positioning must be considered, as well as the message it sends about the company's future growth prospects and confidence in its financial stability.
ATLANTA, Jan. 25, 2024 (GLOBE NEWSWIRE) -- Acuity Brands, Inc. (NYSE: AYI) (the “Company”), a market leading industrial technology company, today announced that its Board of Directors (the “Board”) increased its quarterly dividend by 15 percent to 15 cents per share from 13 cents per share. The dividend is payable on February 14, 2024, to shareholders of record on February 5, 2024. In addition, the Board authorized the additional repurchase of up to 3 million shares of common stock, bringing the outstanding authorization to approximately 3.9 million shares.
About Acuity Brands
Acuity Brands, Inc. (NYSE: AYI) is a market-leading industrial technology company. We use technology to solve problems in spaces, light, and more things to come. Through our two business segments, Acuity Brands Lighting and Lighting Controls (ABL) and the Intelligent Spaces Group (ISG), we design, manufacture, and bring to market products and services that make a valuable difference in people’s lives.
We achieve growth through the development of innovative new products and services, including lighting, lighting controls, building management solutions, and location-aware applications. We achieve customer-focused efficiencies that allow us to increase market share and deliver superior returns. We look to aggressively deploy capital to grow the business and to enter attractive new verticals.
Acuity Brands, Inc. is based in Atlanta, Georgia, with operations across North America, Europe, and Asia. The Company is powered by approximately 12,000 dedicated and talented associates. Visit us at www.acuitybrands.com.
Investor Contact:
Charlotte McLaughlin
Vice President, Investor Relations
(404) 853-1456
investorrelations@acuitybrands.com
Media Contact:
April Appling
Vice President, Corporate Communications
corporatecommunications@acuitybrands.com
FAQ
What is the new quarterly dividend for Acuity Brands, Inc.?
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