Science Applications International Corp. [SAIC] yesterday said it has initiated a quarterly cash dividend of 28 cents per share and authorized its first share repurchase program.
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| SAIC’s Reconfigurable Tactical Operations Simulator. Photo: SAIC |
The company, which was spun out of Leidos Holdings [LDOS] as part of the two companies’ separation from the “old” SAIC less than a week ago, can repurchase up to 5 million shares of its common stock. SAIC said that there is no end date for the repurchase program and that it isn’t obligated to buy back any of its shares.
“The initiative of a quarterly dividend and share repurchase authorization are consistent with our stated capital allocation policies,” Tony Moraco, SAIC’s CEO, said in a statement. “The board’s action reflects the company’s strong current financial position and expectation of cash generation in excess of its operating needs.”