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Sirius XM (SIRI) Adds $2B to Existing Share Buyback Program

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Sirius XM Holdings Inc. (SIRI - Free Report) board approved an extra stock repurchase of $2 billion. Incidentally, the buyback program was initially started in 2013 and following this additional repurchase, the company’s total authorization now stands at $12 billion. The company is expected to fund the repurchase through cash in hand, future cash flow from operations as well as future borrowings.

The extension of the stock repurchase program is indicative of the company’s continued efforts to reward shareholders and increase their confidence in its long-term growth. Sirius XM has the requisite amount of capital to make long-term investments in its programming, research and development and overall operations besides pursuing strategic opportunities arising at any point of time.

Moreover, the company announced a quarterly cash dividend of 1.1 cent per share, payable on Feb 28 to shareholders of record as of Feb 7.

Investors always prefer an income-generating stock and a high dividend-yielding one is obviously much coveted. It goes without saying that they are always on the lookout for companies with a track record of consistent and incremental dividend payments to put their money on.

It is through share buybacks and dividend payouts that companies bolster investors’ confidence, persuading them to either buy or hold the scrip.

In December 2017, some key airline players namely JetBlue Airways Corporation (JBLU - Free Report) andUnited Continental Holdings (UAL - Free Report) had announced share buybacks. While JetBlue’s board approved a new share repurchase of up to $750 million, United Continental announced a new $3-billion share buyback program. Earlier last year, Kansas City Southern announced that its board of directors approved a new share repurchase program worth $800 million.

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