Marsh & McLennan Companies, Inc. (NYSE:MMC) is making good its promise to return value to shareholders through a number channels that include dividends, buybacks and strategic asset acquisitions. In the latest development, the company is preparing to return $0.31 per share to shareholders in the form of dividends.
The upcoming dividend payout will be distributed to shareholders of record as of January 25, 2016. The actual distribution will be on Feb. 12, 2016. Marsh & McLennan Companies, Inc.(NYSE:MMC) consistently pays out dividends and the management has even committed to boost dividend payout by 10% annually.
Creating and returning value to shareholders
Marsh & McLennan Companies, Inc.(NYSE:MMC) has identified multiple channels through which to drive value to shareholders. The management cites strategic merger and acquisitions. In terms of M&A, MMC has acquired about 50 companies from 2009. Those have mostly been strategic acquisitions aimed at boosting revenue and profits. A number of the acquired assets have also been defensive plays. Through such strategic acquisitions, MMC is looking to grow revenue faster, cut costs and boost margins so that it can generate more free cash flow to return to shareholders and also reinvest in business growth.
In terms of profitability, MMC is interested in expanding and deepening its play in small and midsize businesses.
Marsh & McLennan Companies, Inc.(NYSE:MMC)returns value to shareholders through a combination of dividends and buybacks.
Marsh & McLennan Companies, Inc.(NYSE:MMC) is schedule to report its 4Q2015 earnings before markets open on Feb. 4, 2016. EPS for the quarter is projected to be $0.70.
A number of analysts have recently weighed in on Marsh & McLennan Companies, Inc.(NYSE:MMC). Analysts at Keefe Bruyette& Woods recently upgraded the stock to Outperform from Market Perform. However, the analysts trimmed their price target on the stock to $61 from $62. Analysts at Credit Suisse are less optimistic on the future of MMC, recently downgrading the stock to Neutral from Outperform.