Activision Blizzard Inc. (ATVI) will raise its annual dividend by 14.6 percent to 47 cents in 2021. This comes after a dividend hike of 10.8 percent to $0.41 per share in the first quarter of 2020. This follows dividend increases in each of the past ten years. The games developer pays only one dividend every year.
The Board of Directors declared a cash dividend of $0.47 per common share, payable on May 6, 2021 to shareholders of record at the close of business on April 15, 2021, which represents a 15% increase from 2020. Additionally, the Board of Directors authorized a new two-year stock repurchase program under which the company is authorized to repurchase up to $4 billion of its outstanding common stock during the period. The new rate of 41 cents annually yields 0.7% at the current stock price of $92.68 for ATVI.
The company's annual dividend payment to shareholders will jump to $363 million. The average dividend growth rate in the last five years has increased to 12.6 percent annually if this 2021 dividend hike is included.
Activision Blizzard, Inc. is a developer and publisher of online, personal computer (PC), video game console, handheld, mobile and tablet games. Blizzard is engaged in developing and publishing of interactive software products and entertainment content, particularly in PC gaming. King is a mobile entertainment company. It is engaged in other businesses, including The Major League Gaming business; The Activision Blizzard Studios business, and The Activision Blizzard Distribution business. It also develops products spanning other genres, including action/adventure, role-playing and simulation. Its franchises include Call of Duty, World of Warcraft, Spyro, Crash, Bubble Witch, Farm Heroes, Overwatch, Hearthstone, Diablo and Candy Crush. Activision Blizzard became publicly listed in 1983 and has been paying a dividend to shareholders every year since 2010.