Lexmark initiates quarterly dividend

"With Lexmark’s strong liquidity position and long history of solid cash generation, we feel confident that we can continue to pursue acquisitions to support the growth of the company while returning excess cash to our shareholders via the initiation of a quarterly dividend and through our share repurchase program," said Paul Rooke, Lexmark chairman and chief executive officer. "The initiation of a quarterly dividend reflects our confidence in the future of the business and our commitment to generating value for our shareholders."

The initial cash dividend of $0.25 per share will be paid on Nov. 30, 2011, to shareholders of record as of the close of business on Nov. 15, 2011. The quarterly rate represents an annualized dividend of $1.00 per share, which equates to a yield of approximately 3.2 percent based on the company’s stock price as of today’s close of trading.

Future declarations of dividends are subject to board of director approval and may be adjusted as business needs or market conditions change. The company also repurchased $125 million of Lexmark shares in the third quarter of 2011 and anticipates repurchasing an additional $125 million of Lexmark shares in the fourth quarter of 2011.