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Linde (LIN) Ups Dividend, Announces New $5B Buyback Program

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Linde plc (LIN - Free Report) recently announced that its board of directors has approved an increase in quarterly dividend. The new dividend of $1.06 per share reflects a 10% increase from the previous figure.

The increased dividend will be paid on Mar 22 to its shareholders of record as of Mar 5. Following the hike, the company’s new annualized dividend amounted to $4.24 per share. Based on the closing price of $255.85 per share on Jan 26, 2021, the stock has a dividend yield of 1.7%. Hence, Linde is focused on returning cash to shareholders.

Moreover, it announced a new stock repurchase program of $5 billion. This buyback program is expected to replace its existing $6-billion program, which is scheduled to expire on Feb 1, 2021. Such activities are part of Linde’s long-term goal of boosting shareholder value. Importantly, using the latest share buyback program, the company will likely be able to repurchase up to 15% of outstanding shares. It can use the funds through Jul 31, 2023.

The company’s efforts to enhance shareholder value are supported by profitable operations. Significant demand for industrial gases like hydrogen, used for refining of raw crude, and oxygen, needed in steel production, will continue to fetch Linde incremental cash flows. Markedly, it has signed a memorandum of understanding with Snam last December to develop hydrogen projects and associated infrastructure in Europe.

Price Performance

In the past three months, Linde has gained 18%.

Zacks Rank & Stocks to Consider

Linde currently has a Zacks Rank #3 (Hold). Some better-ranked players in the energy space include Cactus, Inc. (WHD - Free Report) , Suncor Energy Inc. (SU - Free Report) and Ameresco, Inc. (AMRC - Free Report) , each holding a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Cactus’ bottom-line estimates for 2021 have increased nearly 14% in the past 60 days.

Suncor’s sales for 2021 are expected to increase 16.5% year over year.

Ameresco’s bottom line for 2021 is expected to increase 19.6% year over year.

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