Kansas City Southern Lifts Dividend; Announces Share Buyback - Quick Facts

(RTTNews) - Kansas City Southern (KSU) announced its Board approved updates to its capital allocation policy. Under the updated policy, the company plans to continue deploying available cash as: approximately 40-50% to capital projects and strategic investments; and approximately 50-60% to share repurchases and dividends.

The company announced an increase in the quarterly dividend on common stock to $0.44 per share from $0.40. The board declared a common stock dividend for this increased amount payable on January 20, 2021, to stockholders of record at the close of business on December 31, 2020.

Kansas City Southern also announced a new $3.0 billion share repurchase program, expiring December 31, 2023. The program replaces the $2.0 billion stock repurchase program announced in 2019 under which the company has purchased approximately $1.4 billion of company stock.