Lear Corp. (LEA) Raises Quarterly Dividend 20% to $0.30; Approves $1B Buyback

Lear Corp. (NYSE: LEA) declared a quarterly dividend of $0.30 per share, or $1.2 annualized. This is a 20% increase from the prior dividend of $0.25.

The dividend will be payable on March 23, 2016, to stockholders of record on March 2, 2016, with an ex-dividend date of February 29, 2016.

The annual yield on the dividend is 1.2 percent.

Lear also today announced that its Board of Directors has authorized an increase in the Company's share repurchase authorization to $1 billion while maintaining the authorization period until December 31, 2017.

"The Lear Board of Directors is committed to delivering superior returns to shareholders," said Henry D. G. Wallace, Lear's Non-Executive Chairman. "The shareholder actions announced today demonstrate the confidence Lear's Board of Directors has in the Company's outlook. The Board believes that the Company's balanced strategy of investing in the business and consistently returning cash to shareholders, while maintaining a strong and flexible balance sheet, will allow Lear to profitably grow and create significant value for shareholders."

"The Company's strong operating performance and financial strength are allowing us to build upon our proven record of returning capital to shareholders. The investments we have made in our business have put the Company in the strongest competitive position in our history. I am confident that Lear is well positioned for future growth and success," said Matt Simoncini, Lear President and Chief Executive Officer.

At the end of 2015, Lear had $513 million remaining on its share repurchase authorization. Including today's action, Lear's total available share repurchase authorization is $1 billion.

Since the Company began its share repurchase and dividend programs in 2011, Lear has returned more than $2.7 billion to shareholders, including the repurchase of 34% of the Company's shares outstanding. In addition, Lear's total shareholder return over the last five years was 162%, compared with 49% for the peer group shown in the Company's Annual Report on Form 10-K and 81% for the S&P 500 over the same period.

Lear may implement share repurchases under the new share repurchase authorization utilizing a variety of methods including open market purchases, accelerated share repurchase programs and structured repurchase transactions. Share repurchases are subject to the Company's alternative uses of capital and prevailing financial, market and industry conditions.

Lear's 2016 Annual Meeting will be held on May 19, 2016 at 9:00 a.m. Eastern Time, at the Company's corporate headquarters, 21557 Telegraph Road, Southfield, Michigan 48033. The record date for determining eligibility to vote at the 2016 Annual Meeting is March 24, 2016.

For a dividend history and other dividend-related data on Lear Corp. (LEA) click here.

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