Dell Technologies (DELL) to Announce Long-Term Guidance, $5B Share Repurchase Program and Dividend Intention

September 23, 2021 8:12 AM EDT
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Dell Technologies (NYSE: DELL) will announce long-term guidance, a share repurchase program and outline its plans to begin paying quarterly dividends in its fiscal 2023 first quarter during its Securities Analyst Meeting taking place online today at 9:00 a.m. CT/10:00 a.m. ET. Speakers will include chairman and chief executive officer Michael Dell along with other key members of the executive leadership team, with significant time allotted for Q&A.

Dell Technologies will announce that it expects compounded annual revenue growth of 3%-4% and compounded annual growth in non-GAAP diluted earnings per share of 6+% through fiscal 2026. The company will also announce that it expects net income to adjusted free cash flow conversion of 100% or better through this period.1 Dell Technologies' third quarter fiscal 2022 expectations will remain consistent with the guidance described in the company's second quarter earnings call, including year-over-year revenue growth in the mid- to high teens and operating income up 1%-2% sequentially.

Dell Technologies also will announce approval of a share repurchase program of up to $5 billion effective November 2021, upon the projected completion of the VMware spin-off, at which time it expects to reach investment-grade corporate family credit rating. In addition, the company will announce that it plans to initiate a quarterly dividend with an attractive yield in its fiscal 2023 first quarter, subject to approval by its board of directors, targeting an annual dividend of approximately $1 billion. The company will announce the actual dividend rate and other information about the dividend program upon board approval. Dell Technologies is targeting returning 40%-60% of adjusted free cash flow to shareholders through share repurchases and dividends, starting in fiscal 2023.

"At Dell Technologies, our core business is growing and thriving," said Michael Dell, chairman and chief executive officer, Dell Technologies. "And from there, we are building multiple, multi-billion-dollar businesses in areas like edge and telecom where our market position, unique capabilities, and go-to-market reach let us do what others can't."

Information about the foregoing matters and other information to be delivered by Dell Technologies at the Securities Analyst Meeting can be found in the company's current report on Form 8-K furnished to the Securities and Exchange Commission.

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