Dividend payment history
CA Technologies’ (CA) interrupted dividend payment strategy on a quarterly basis makes the stock look attractive to some investors. It continues to enhance shareholder wealth through regular dividend payments and buybacks.
In fiscal 3Q18, the company paid back $106 million in dividends with a cumulative payment of $321 million in the last three quarters. CA continues to maintain the same dividend payment trend in fiscal 2016 and 2017. It may exit fiscal 2018 with the same dividend return policy.
In the graph above, you can see CA’s declining dividend payment trend in the last five years. It returned an annual average of $443 million, which clearly suggests that the company is maintaining stability in its dividend return policy.
Dividend yield and total return
In fiscal 3Q18, CA returned $464 million to its shareholders through buybacks and dividend payments compared with $464 million paid in fiscal 3Q17. In the last five years, it has returned $4.2 billion to investors.
A healthy free cash flow coupled with a lower leverage of 0.4 could allow the company to boost shareholder wealth going forward.
CA has finally raised its dividends. The last time it raised its dividend was in 2016 by 2%. Before that, it raised it from $0.05 to $0.25 in 2012. A slow policy for dividend increases could affect shareholder wealth.