LEXINGTON, Ky., April 24, 2014 /PRNewswire/ -- Lexmark International, Inc. ( NYSE: LXK) today announced that its Board of Directors has approved an increase of the quarterly dividend per share of Lexmark Class A Common Stock by $0.06 per share to $0.36 per share (or $1.44 per share on an annual basis) from the previous $0.30 per share (or $1.20 per share on an annual basis).
"I am pleased to announce a 20 percent increase in our quarterly dividend to Lexmark's shareholders," said Paul Rooke, Lexmark chairman and chief executive officer. "The increase in our quarterly dividend reflects confidence in our ability to generate strong free cash flow while we transform Lexmark into an end-to-end solutions provider that helps customers solve their unstructured information challenges."
The new quarterly dividend of $0.36 per share will be paid on June 13, 2014, to shareholders of record as of the close of business on May 30, 2014. The new quarterly dividend equates to a yield of approximately 3.4 percent based on the company's stock price as of yesterday's close of trading.
Lexmark is continuing to execute on its stated capital allocation framework of returning more than 50 percent of free cash flow to shareholders, on average, through quarterly dividends and share repurchases while building and growing its solutions and software business through expansion and acquisitions.
Lexmark has returned more than 90 percent of free cash flow generated since the first quarter of 2011 to shareholders through dividends and share repurchases.
Future declarations of dividends are subject to Board of Director approval and may be adjusted as business needs or market conditions change.
Lexmark is uniquely focused on connecting unstructured printed and digital information across enterprises with the processes, applications and people that need it most. For more information, please visit www.lexmark.com.
Lexmark and Lexmark with diamond design are trademarks of Lexmark International, Inc., registered in the U.S. and/or other countries. All other trademarks are the property of their respective owners.
SOURCE Lexmark International, Inc.