Hasbro boosts dividend, authorizes $500M buyback

PAWTUCKET – Another $500 million stock repurchase program has been authorized by the board of directors of Hasbro Inc. (NYSE: HAS).
“This program reflects the continuing commitment of the board of directors and Hasbro management to pursue opportunities that create value for our shareholders,” Alfred J. Verrecchia, Hasbro’s president and CEO, said in a statement yesterday afternoon.
The authorization allows but does not require the repurchase of Hasbro shares. The number and value of shares actually repurchased under the program, and the timing of those purchases, will depend on a number of factors including the price of Hasbro common stock, the company said.
Since May 2005, Hasbro has spent more than $1.15 billion to buy back nearly 48.40 million shares, not including the $200 million it spent last May to retire Lucasfilm Ltd. and Lucas Licensing Ltd. warrants to purchase 15.76 million shares. (READ MORE) It currently has $48.3 million remaining on the $500 million buyback authorization announced in August.
In a separate action yesterday, the board of directors also increased the Hasbro’s quarterly dividend by 25 percent, to 20 cents per common share from the previous 16 cents. The cash dividend is payable May 15 to shareholders of record at the close of business May 1.
“The board’s decision to increase the dividend recognizes the company’s continued strong earnings and cash flow, and demonstrates Hasbro’s commitment to returning excess cash to shareholders,” Verrecchia said.
Hasbro Inc. (NYSE: HAS) – the world’s second-largest toymaker – designs, manufactures and markets games and toys under brands including Playskool, Tonka, Milton Bradley, Parker Brothers, Tiger and Wizards of the Coast. Additional information is available at www.hasbro.com.