Air Products & Chemicals Inc. (APD) board raised the
industrial-gas maker's quarterly dividend 18%, while the company
touted its $350 million in share repurchases since the end of the
year.
The popularity of dividends has increased alongside share
buybacks as companies seek ways to appeal to investors and utilize
cash stockpiles now that they don't need to clutch cash as tightly
in an improving economy with easier credit.
Air Products moved the dividend to 58 cents from 49, with the
increase costing roughly $19 million each quarter.
The $350 million in repurchases represents roughly 2% of the
company's current market value, based on the company's number of
shares outstanding on Jan. 18 listed in a filing.
Air Products, which been tied up in court proceedings over its
hostile bid for rival Airgas Inc. (ARG) recently, reported its
fiscal first-quarter profit rose on better-than-expected revenue
gains despite charges from the Airgas offer.
Shares were up 2.3% at $86.09 in recent trading.
-By Joan E. Solsman, Dow Jones Newswires; 212-416-2291;
joan.solsman@dowjones.com