NXP Semiconductors N.V. (NASDAQ: NXPI) has announced its quarterly dividend and additional share repurchase authorization. The board of directors has approved the payment of an interim dividend of $1.014 per ordinary share for the third quarter of 2024. This represents a significant return to shareholders and reflects the company's confidence in its ability to drive long-term growth and strong cash flow.
In addition to the dividend, the board has approved an additional $2 billion authorization to its existing share repurchase program. This is in addition to the approximately $726 million currently remaining for repurchase under the existing share repurchase authorization. These actions signify the company's commitment to returning excess cash flow to shareholders.
The press release also notes that cash dividends will be subject to the deduction of Dutch dividend withholding tax at the rate of 15 percent, which may be reduced in certain circumstances. Shareholders are advised to consult their tax advisor for the tax treatment of any dividends.
NXP Semiconductors N.V. is known for its innovative solutions in the automotive, industrial & IoT, mobile, and communications infrastructure markets. The company posted revenue of $13.28 billion in 2023 and operates in more than 30 countries.
Following these announcements, the company's shares moved 0.8%, and are now trading at a price of $248.78. For more information, read the company's full 8-K submission here.
