Starwood Hotels & Resorts Worldwide's HOT opened sharply higher Friday after its board boosted a buyback authorization to $1.5 billion and declared a special dividend of $0.65 per share.
The increased buyback plan includes $400 million remaining under the board's prior authorization.
Starwood didn't disclose plans to pay for the stock repurchase program, but said it "has a strong balance sheet."
The pace of its repurchases will be increased, according to Chief Executive Frits van Paasschen, who noted buybacks of about $200 million so far in 2014.
The special dividend is part of Starwood's plan announced in February to pay special dividends over four quarters to return to shareholders the $500 million from the sale of its St. Regis Bal Harbour project. The first special dividend of $0.65 per share was paid March 28.
The latest special dividend is payable on September 26, to holders of record September 5.
Starwood's board also declared a regular quarterly dividend of $0.35 per share with the same record and payment dates as the special dividend.
Starwoodsopened sharply higher Friday and traded recently at $79.00, up 2.8 percent.
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