Autoliv, Inc. (NYSE:ALV) shares are trading lower in the premarket session on Tuesday.
The automotive safety supplier announced a 3% increase in its quarterly dividend to 70 cents per share for the fourth quarter of 2024, up from 68 cents. This marks the company's continued commitment to returning capital to shareholders.
In addition, Autoliv approved an extension of its share repurchase program through the end of 2025. The program allows for the repurchase of up to 7.5 million shares or $550 million, whichever limit is reached first.
Since 2021, Autoliv has returned over $1.6 billion to shareholders through dividends and buybacks, demonstrating resilience in a challenging market.
Autoliv also plans to retire two million treasury shares this quarter, further reducing its share count. This reduction, along with the shares repurchased in the current quarter, will decrease the total number of outstanding shares.
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The company's proactive approach to shareholder returns underscores its ongoing financial strength and long-term value creation.
"Our strong balance sheet and positive cash flow trend support increased shareholder returns," says Jan Carlson, Chairman of the Board of Directors. "The Board of Directors is pleased to approve a higher dividend payout, extend the share repurchase program, and reduce number of treasury shares in line with our commitment to return value to our shareholders."
According to Benzinga Pro, Autoliv stock has gained over 4.2% in the past year.
Autoliv recently lowered its outlook. The company now expects full-year 2024 organic sales growth to be 1%, down from the previously anticipated 2%, due to unfavorable market mix developments.
With the seasonally strong fourth quarter remaining of the year, the company reaffirmed its guidance of around 9.5-10.0% adjusted operating margin for 2024, but to be at the low end of this range.
Price Action: ALV shares are trading lower by 1.14% to $100.05 premarket at last check Tuesday.
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