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How Is Accenture Increasing Shareholder Value?

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Dividends and share repurchases

In fiscal 2016, Accenture (ACN) returned ~$4 billion to shareholders, which included ~$1.4 billion in cash dividends and $2.6 billion in share repurchases.

According to Accenture’s press release, “Accenture plc has declared a semi-annual cash dividend of $1.21 per share on Accenture plc Class A ordinary shares for shareholders of record at the close of business on October 21, 2016, and Accenture Holdings plc will declare a semi-annual cash dividend of $1.21 per share on Accenture Holdings ordinary shares for shareholders of record at the close of business on Oct. 18, 2016.”

In fiscal 4Q16, Accenture repurchased 5.6 million shares for $640 million, whereas the firm repurchased 24.5 million shares for $2.6 billion for fiscal 2016. Cash dividends paid in fiscal 2016 rose 8% YoY (year-over-year) to $1.4 billion or $2.20 per share.

Accenture has a dividend yield of 2%, while IBM (IBM) and Hewlett-Packard Enterprises (HPE) have dividend yields of 3.5% and 1%, respectively.

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Growth balanced across geographies and business groups

Accenture’s CFO, David Rowland stated that growth in fiscal 2016 was balanced across various business segments and geographies, indicating that the firm is not overly dependent on a particular segment for revenue growth.

Adjusted EPS (earnings per share) was $5.34 in fiscal 2016 and rose 11% YoY, as compared to fiscal 2015, driven by strong top-line growth that was well above the firm’s previous outlook.

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