Kansas City Southern (KCS) (NYSE: KSU) board of directors has approved two actions to return capital to KCS´s shareholders as part of KCS´s capital allocation plan, the company said:
An increase in the quarterly dividend on KCS´s common stock from USD 0.33 to USD 0.36 per share, and a new USD 800 million share repurchase program, which replaces the company´s previous USD 500 million program announced in 2015 and completed in the second quarter of 2017.
The board declared a common stock dividend at this increased amount payable on October 4, 2017, to stockholders of record at the close of business on September 11, 2017.
The new authorization includes: (a) a USD 200 million Accelerated Share Repurchase program, which will be launched immediately and is expected to be completed by early in the fourth quarter of 2017; and (b) a USD 600 million open market purchase program expiring June 30, 2020.
Headquartered in Kansas City, Mo., KCS is a transportation holding company that has railroad investments in the US, Mexico and Panama. Its primary US holding is The Kansas City Southern Railway company, serving the central and south central US Its international holdings include Kansas City Southern de Mexico, S.A. de C.V., serving northeastern and central Mexico and the port cities of LÃ¡zaro CÃ¡rdenas, Tampico and Veracruz, and a 50 percent interest in Panama Canal Railway company, providing ocean-to-ocean freight and passenger service along the Panama Canal. KCS´ North American rail holdings and strategic alliances are primary components of a railway network, linking the commercial and industrial centers of the US, Mexico and Canada.