The Board of Directors of Trane Technologies plc, a climate innovator, declared a quarterly dividend of $0.67 per ordinary share, or $2.68 annualized.
The dividend is payable March 31, 2022, to shareholders of record on March 4, 2022. The declaration was consistent with the company’s previously announced intention to increase the dividend by 14%. When combined with the dividend increase of 11% in the first quarter of 2021, the annual dividend is up 26% since launching as a company focused on climate innovation in March of 2020.
Share repurchase program
The Board of Directors also authorized a new share repurchase program of up to $3 billion, to commence upon the completion of the company’s 2021 $2 billion program. The 2021 program had approximately $1.05 billion remaining as of Jan 31, 2022.
Trane Technologies remain committed to deploying 100% of excess cash over time“Today’s announcements reflect our strong balance sheet, liquidity position, and continued confidence in our ability to generate strong future free cash flow,” said Dave Regnery, the Chair and CEO of Trane Technologies.
He adds, “We remain committed to deploying 100% of excess cash over time through our balanced capital allocation strategy, which includes maintaining a competitive dividend that grows with earnings and repurchasing shares when they trade below the company’s calculated intrinsic value.”
Timing of the program
The timing of the program will be dependent on the company’s available liquidity and cash flow, and general market conditions. The repurchase program may be executed through various methods, including open market repurchases.
Trane Technologies has paid consecutive quarterly cash dividends on its common shares since 1919 and annual dividends since 1910.