By Dhirendra Tripathi
Investing.com – Visa stock (NYSE:V) rose 0.8% on Thursday after the company topped up its ongoing share repurchase program with $12 billion.
The company had $1.2 billion left from its previously authorized exercise. With the new approval, it has $13.2 billion committed for future share repurchases.
The authorizations have no expiration date, and the repurchases will be exercised from time to time at prices the company deems appropriate, a release said.
The repurchases may be undertaken through accelerated programs, open market purchases or privately negotiated transactions, it said.
Companies have been using cash from pandemic-fueled record earnings to return money to shareholders through buybacks and dividends. Repurchases also help in shoring up earnings per share by reducing the total shares available for trade.
In the year ended September 30, Visa returned $11.5 billion through dividends and repurchases. It reported annual net revenue of over $24 billion, up 10%.