On December 16, 2024, OneSpan Inc. (NASDAQ: OSPN) announced the initiation of a quarterly cash dividend program. The company's board of directors declared an initial quarterly cash dividend of $0.12 per share to be paid on February 14, 2025, to shareholders of record as of the close of business on January 31, 2025.
This move reflects the company's commitment to returning capital to shareholders as part of a balanced capital allocation strategy. OneSpan's Chair of the Board, Al Nietzel, emphasized that the decision to implement a quarterly cash dividend program underscores the company's confidence in its growth potential and future cash generation capabilities.
Looking at the company's financial performance, it's notable that this announcement comes on the heels of significant progress over the past year. As a result, the company is considering a range of options for additional capital allocation, including share repurchases, special dividends, increases to the quarterly dividend, organic investments in the business, and targeted mergers and acquisitions.
Furthermore, it's important to highlight that the declaration and payment of future dividends are subject to the sole discretion of the board of directors, indicating the importance of ongoing financial performance and strategic considerations in the company's dividend policy.
It's also worth noting that OneSpan provides security, identity, electronic signature, and digital workflow solutions for digital transactions and agreements. The company's products and services cater to a wide range of use cases, from simple transactions to complex workflows requiring higher levels of security. Trusted by global blue-chip enterprises, including more than 60% of the world's 100 largest banks, OneSpan processes millions of digital agreements and billions of transactions in over 100 countries annually.
Following these announcements, the company's shares moved 6.5%, and are now trading at a price of $19.23. Check out the company's full 8-K submission here.
