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Western Digital shares rise 8% on accelerated dividend

Western Digital shares rise 8% on accelerated dividend

 

 

Western Digital (NASDAQ:WDC) shares advanced to close nearly 8 per cent higher on Wednesday after the hard-disk drive maker announced an accelerated cash dividend of 25 cents for the quarter ending December 28. 

The dividend will be dished out on December 26, to the company's shareholders of record as of December 14. 

 

In September, the company said that beginning in fiscal year 2013, it is targeting a return to shareholders of around 50 per cent of its free cash flow through a mix of cash dividends and share buybacks. 

In late October, the company said its fiscal first-quarter net income more than doubled thanks to the acquisition of a data storage unit of Hitachi earlier this year.

For the three months that ended September 28, net profit rose to $519 million, or $2.06 per share, compared to $239 million, or $1.01 per share, a year earlier. Excluding items, earnings came in at $2.36 per share, beating the the $2.29 per share expected by analysts according to FactSet.

Revenue rose 50 per cent to $4.04 billion, higher than the $3.98 billion expected by analysts.

 

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