Avnet boosts dividend, share buyback program

Avnet Inc.

AVT, +2.44%

said Monday it was increasing its dividend by 5% and adding $500 million to its stock repurchase program. The electronic components company’s new quarterly dividend of 21 cents a share, up from 20 cents a share, will be payable Sept. 25 to shareholders of record on Sept. 11. Based on Friday’s stock closing price of $40.99, the new annual dividend rate implies a dividend yield of 2.05%, compared with the implied yield for the S&P 500

SPX, +1.06%

of 2.02%. The company said it now has $675 million available to buy back stock, which based on Friday’s closing prices would represent about 16% of the shares outstanding. The stock has lost 5.5% over the past three months, while the S&P 500

SPX, +1.06%

has gained 1.0%.

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