By Tess Stynes
Marsh & McLennan Cos. (MMC) raised its quarterly dividend by
9% and authorized an increase in its stock buyback program that
will allow the company to repurchase $1 billion of its shares.
"The company's effective capital management strategy allows
[Marsh & McLennan] to strike a good balance between returning
cash to shareholders and investing in its businesses and its
people," Chairman Ian Lang said.
The quarterly dividend was raised to 25 cents a share, an
increase of 2 cents a share. The increased payout to shareholders
is expected to cost the company--which recently had a market
capitalization of about $22.5 billion--an additional $11 million a
quarter.
Further details of the company's stock buyback program weren't
provided.
Marsh & McLennan recently reported that its first-quarter
earnings rose 19%, led by its risk-and-insurance division, as the
professional-services company also recorded wider margins. The
insurance and consulting businesses have been a continued source of
strength for Marsh & McLennan, as have a series of acquisitions
that have given a boost to the company's revenue.
Shares were up nine cents at $40.84 in recent trading.
Write to Tess Stynes at Tess.Stynes@dowjones.com
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