JACKSONVILLE, Fla. — CSX Corp. announced that its Board of Directors has approved a 3-for-1 stock split, a 38 percent increase in the quarterly dividend on its common stock, and a $2 billion share buyback program.
“These actions reflect the success of CSX and its confidence in the future,” said Michael J. Ward, chairman, president and chief executive officer. “They build upon the $2 billion investment CSX is making this year to meet the nation’s future transportation needs and drive long-term shareholder value.”
From the beginning of 2006 to the end of 2010, CSX invested $8.3 billion in its business, raised its dividend 300 percent, and repurchased$5.6 billion worth of shares.
“The financial strength of CSX has allowed the company to use a balanced approach to deploying cash while also improving its credit profile,” said Oscar Munoz, executive vice president and chief financial officer.
The new quarterly dividend of $0.36, or $0.12 on a post-split basis, is payable on June 15, 2011 to shareholders of record at the close of business on May 31, 2011. The stock split will be for all shareholders of record at the close of business on May 31, 2011 with a distribution date of June 15, 2011. The new share buyback program is authorized to begin immediately and is expected to be completed by year-end 2012. Under the program, the company may purchase shares from time to time on the open market, through block trades or otherwise.