Corteva, Inc. (CTVA) will start paying a quarterly dividend of $0.13 per share in the third quarter of 2019. This is the first common stock dividend after its spinoff from DowDuPont earlier this year. Also the agriscience company announced a $1 billion share repurchase program.
The first dividend is payable September 13, 2019, to the Company's shareholders of record on July 31, 2019. This marks the first cash dividend to be issued by the Company since its spinoff from DowDuPont on June 1, 2019. The new annualized dividend rate of 52 cents yields approximately 1.8% at the current stock price.
James C. Collins, Jr., Chief Executive Officer of Corteva Agriscience said, "Collectively, these actions underscore the Board's confidence in our growth strategy and further reinforce our commitment to building a shareholder-friendly company." Collins continued, "The initiation of a quarterly common stock dividend signifies an important next step in this commitment and our focus on consistently and continuously returning excess cash to shareholders."
Corteva states that it expects to pay common stock dividends on a quarterly basis and in the medium term targets a dividend policy of 25 to 35 percent of annual net income.
Corteva Agriscience provides farmers with seeds and crop protection products. The company's brands include Pioneer, Granular and Brevant seeds. Corteva Agriscience became an independent public company on June 1, 2019, and was previously the Agriculture Division of DowDuPont, created by combining DuPont Crop Protection, DuPont Pioneer and Dow AgroSciences.