Neenah, Wis. — Bemis Co. Inc. plans to buy back more stock and is increasing the company's dividend.
The Neenah-based flexible and rigid packaging company's board authorized the repurchase of another 20 million shares. This goes along with 2.4 million shares remaining from a previous share repurchase authorization, Bemis said.
Companies buy back their own stock as a way to help boost the value of the shares that remain on the market.
Bemis also is increasing its quarterly dividend by a penny, or 4 percent, from 28 to 29 cents per share. The first dividend will be paid March 1 to shareholders of record at the end of business on Feb. 17.
“In alignment with our priority to increase shareholder value, we will continue to emphasize growth through organic and inorganic initiatives, while committing to utilize our excess cash to repurchase shares during the next three to five years,” CEO William Austen said in a statement.