Chemed Corporation Board of Directors Authorizes an Additional $300 Million for Stock Repurchase and Declares Quarterly Dividend of 50 Cents

Rhea-AI Summary

Chemed (NYSE:CHE) has announced two significant financial decisions: First, its Board of Directors has authorized an additional $300 million for stock repurchase under the existing share repurchase program, to be funded through operational cash flow and revolving credit facility. Second, the board declared a quarterly cash dividend of 50 cents per share, payable on December 6, 2024, to shareholders of record as of November 18, 2024. This marks Chemed's 214th consecutive quarterly dividend in its 53-year history as a public company.

Positive

• Authorization of $300 million additional stock repurchase program
• Maintained quarterly dividend of 50 cents per share
• 214th consecutive quarterly dividend payment, showing consistent shareholder returns
• Multiple funding sources available for share repurchases

Negative

• Potential increase in debt through utilization of revolving credit facility for buybacks

Insights

Financial Analyst

The $300 million stock buyback authorization significantly strengthens Chemed's capital return program, representing approximately 3.6% of its current market capitalization. This move, combined with the consistent quarterly dividend of $0.50 per share, demonstrates robust financial health and commitment to shareholder returns. The company's dual revenue streams from VITAS Healthcare and Roto-Rooter provide stable cash flow to support these initiatives. The use of revolving credit alongside operational cash indicates strategic financial planning, though investors should monitor the debt levels. The 214-quarter dividend streak highlights exceptional financial stability and reliable income potential for long-term investors.

CINCINNATI--(BUSINESS WIRE)-- Chemed Corporation (NYSE:CHE) announced today that the Board of Directors has formally authorized an additional $300 million for stock repurchase under Chemed’s existing share repurchase program. These share repurchases will be funded through a combination of cash generated from operations as well as utilization of its revolving credit facility.

The Board of Directors has declared a quarterly cash dividend of 50-cents per share on the Company’s capital stock, payable on December 6, 2024, to shareholders of record as of November 18, 2024. This is equal to the dividend paid in August 2024. This represents the 214^th consecutive quarterly dividend paid by Chemed in its 53 years as a public company.

Listed on the New York Stock Exchange and headquartered in Cincinnati, Ohio, Chemed Corporation (www.chemed.com) operates two wholly owned subsidiaries: VITAS Healthcare and Roto-Rooter. VITAS is the nation's largest provider of end-of-life hospice care and Roto-Rooter is the nation’s leading provider of plumbing and drain cleaning services.

Statements in this press release or in other Chemed communications may relate to future events or Chemed's future performance. Such statements are forward-looking statements and are based on present information Chemed has related to its existing business circumstances. Investors are cautioned that such forward-looking statements are subject to inherent risk that actual results may differ materially from such forward-looking statements. Further, investors are cautioned that Chemed does not assume any obligation to update forward-looking statements based on unanticipated events or changed expectations.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241107809611/en/

Michael D. Witzeman

(513) 762-6714

Source: Chemed Corporation

FAQ

How much additional stock repurchase did Chemed (CHE) authorize in 2024?

Chemed's Board of Directors authorized an additional $300 million for stock repurchase under its existing share repurchase program.

What is Chemed's (CHE) quarterly dividend amount for December 2024?

Chemed declared a quarterly cash dividend of 50 cents per share, payable on December 6, 2024, to shareholders of record as of November 18, 2024.

How will Chemed (CHE) fund its new stock repurchase program?

Chemed will fund the share repurchases through a combination of cash generated from operations and utilization of its revolving credit facility.

How many consecutive quarterly dividends has Chemed (CHE) paid?

Chemed has paid 214 consecutive quarterly dividends in its 53 years as a public company.