Winnebago Industries, Inc. (WGO), leading RV manufacturer, announced that in a meeting held today, the Companyâ€™s Board of Directors announced a new $60 million stock repurchase authorization and an increase in the quarterly cash dividend.
As of May 26, 2007, $1.7 million remained available under the April 12, 2006 Board of Directors common stock repurchase authorization. The Board approved a new authorization for the purchase of up to an additional $60 million of the Companyâ€™s common stock. Winnebago Industries has repurchased approximately 24.4 million shares of common stock for approximately $356.8 million since December 31, 1997.
The Board also declared a quarterly cash dividend of 12 cents a share, payable on October 8, 2007 to shareholders of record as of September 7, 2007. This is a 20 percent increase compared to the previous quarterly dividend of ten cents a share.
â€œWe continue to believe in our long-term strategy of returning profits to our shareholders,â€â€™ Chairman and CEO Bruce Hertzke. â€œWe believe that through the repurchase of our common stock and by increasing dividends we are effectively achieving those goals.â€ said Winnebago Industries.
It appears as though Winnebago is continuing to focus on shareholder value by increasing dividends and repurchasing shares on a regular basis.
On a macroeconomic scale, it makes sense the Winnebago should be increasing sales and revenues with the baby boomer population starting to hit retirement age, which is typically a demographic that will spend a lot of money on travel and recreation.
Chalk this one up to the watch list!