Rexnord (RXN) Initiates $0.08 Quarterly Dividend; Expands Buyback Plan

Rexnord (NYSE: RXN) declared a quarterly dividend of $0.08 per share, or $0.32 annualized.

The dividend will be payable on March 6, 2020, to stockholders of record on February 21, 2020, with an ex-dividend date of February 20, 2020.

The annual yield on the dividend is 1 percent.

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Rexnord Corporation (NYSE: RXN) today announced that its Board of Directors has approved a comprehensive capital allocation strategy that leverages the company’s consistent and high-level of free cash flow to enhance shareholder value creation.

The Board of Directors approved an initial $0.08 per-share quarterly dividend to be paid on March 6, 2020 to shareholders of record as of February 21, 2020, which represents the first common stock dividend Rexnord has paid since its 2012 initial public offering.

In addition, the Board approved expanding Rexnord’s existing share repurchase authorization to $300 million of available capacity.

Rexnord's enhanced capital allocation strategy anticipates:

• Maintaining our net debt leverage ratio in a 2x - 3x range;
• Annual increases in the common dividend amount;
• Annual cash used for share repurchases of $75 million to $150 million;
• Sustaining internal investments that enhance growth, innovation and productivity;
• Targeted acquisitions that enhance our strategic positioning and drive future sales and earnings growth.

Todd Adams, Rexnord’s President and Chief Executive Officer, commented, "Over the past four years, we have repositioned our business portfolio, executed significant structural cost reductions, increased our return on invested capital and increased our sustainable free cash flow while reducing our financial leverage. Our enhanced financial profile positions the Company to expand its options to drive shareholder value creation."

For a dividend history and other dividend-related data on Rexnord (RXN) click here.

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