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Defense contractor Science Applications International Corp., better known as SAIC (NYSE: SAI ) , announced today it was initiating a quarterly dividend program of $0.28 per share. The initial cash dividend is payable on October 30 to stockholders of record as of the close of business on October 15.
The board also announced it was authorizing a program under which SAIC may repurchase up to 5 million shares of company stock, though the timing and actual number of shares bought back will depend on a variety of factors, including price, corporate, and regulatory requirements, as well as other market conditions..
Noting the twin moves reflect the company's strong financial position, SAIC CEO Tony Moraco said, "The initiation of a quarterly dividend and share repurchase authorization are consistent with our stated capital allocation policies."
The regular dividend payment equates to a $1.12-per-share annual dividend, yielding 3.3% based on the closing price today of SAIC's stock.