What would you do with a spare billion dollars?
Lifestyle media company Scripps Networks Interactive Inc. has the cash and will spend on a stock buyback plan.
The Knoxville-based company announced Tuesday its board has authorized an additional $1 billion to buy shares of the company’s stock.
It is the second straight year the company has earmarked $1 billion to repurchase shares. The previous buyback plan was completed at the end of June.
Companies typically repurchase shares to protect their stock price. When shares are taken off the market it increases the value of the remaining shares.
Scripps shares are trading over $53 today with a 52-week high of $57.75.
Scripps’s board also Tuesday approved a quarterly dividend of 12 cents. The dividend will be paid Sept. 10 to shareholders of record on Aug. 31.
The board’s actions “demonstrate our commitment to return value to our shareholders and our confidence in the business to deliver long-term growth and consistent cash flow,” Chairman, President and CEO Kenneth W. Lowe said in a news release.
Scripps will release its 2Q earnings report Thursday.
Scripps Networks portfolio of lifestyle-oriented cable television networks and related websites includes HGTV, Food Network, Travel Channel, DIY Network, Cooking Channel and country music network Great American Country.
Full disclosure: I own a small number of SNI shares.
Photo: Scripps Networks Interactice headquarters in West Knoxville. (News Sentinel)