Last week, in conjunction with the 2012 Dell Analyst Meeting, we announced that our Board of Directors has adopted a dividend policy. Under this policy, we intend to initiate a quarterly dividend payment beginning in the third quarter of the current fiscal year. We expect the initial dividend rate to be $0.32 per share per year, or $0.08 per share quarterly.
As part of its fiduciary duties, the Board regularly evaluates whether it is in the best interest of the company and its stockholders to pay a quarterly dividend. Following progress growing our enterprise solutions and services business, the Board determined that this is the right time to initiate a dividend. Our sustainable & strong cash flow from operations has enabled us to increase the percentage of capital we’ve allocated to R&D, capital expenditures and acquisitions while maintaining a share repurchase program. Providing a cash dividend to our stockholders adds another element to our capital allocation strategy.
In connection with its intention to initiate a quarterly dividend, the Board will need to declare a stockholder record date and dividend payment date. We anticipate these dates will be announced early in the third fiscal quarter (August-October). If you are a holder of common shares on the record date, you will be eligible to receive the quarterly dividend. Payment will be distributed directly to registered holders or through their broker.
Enhancing the return on investment for our stockholders is of the utmost importance to Dell’s Board and management team. We are excited about the commencement of a dividend policy, along with the other elements of our capital allocation strategy. We encourage you to stay tuned to Dellshares and www.dell.com/investor for further updates.
In the meantime, please reach out to us with any questions you have at email@example.com or 512-728-7800. We welcome your feedback.