Encompass Health increases and declares dividend on common stock and announces increase in common stock repurchase authorization

Rhea-AI Summary

Encompass Health Corp. (NYSE:EHC) has announced significant shareholder-friendly moves. The company's board of directors approved a 13% increase in the quarterly dividend, declaring a cash dividend of $0.17 per share on its common stock. This dividend is payable on Oct. 15, 2024, to shareholders of record as of Oct. 1, 2024.

Additionally, Encompass Health has reset its common stock repurchase authorization to $500 million. This decision comes after the company repurchased approximately $17 million of its common stock during the second quarter of 2024. Prior to this reset, the company had about $181 million remaining under its previous authorization as of June 30, 2024.

Positive

• 13% increase in quarterly dividend, enhancing shareholder returns
• New quarterly dividend set at $0.17 per share
• Stock repurchase authorization reset to $500 million, providing flexibility for future buybacks
• $17 million of common stock repurchased in Q2 2024, demonstrating commitment to shareholder value

Negative

• None.

News Market Reaction

+2.50%

1 alert

+2.50% News Effect

On the day this news was published, EHC gained 2.50%, reflecting a moderate positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

BIRMINGHAM, Ala., July 24, 2024 /PRNewswire/ -- Encompass Health Corp. (NYSE:EHC) today announced that its board of directors approved an increase in the Company's quarterly dividend of approximately 13% and declared a quarterly cash dividend on its common stock of $0.17 per share, payable on Oct. 15, 2024, to holders of record on Oct. 1, 2024.

Encompass Health also announced its board approved resetting the aggregate common stock repurchase authorization to $500 million. The Company repurchased approximately $17 million of its common stock during the second quarter and had approximately $181 million remaining under the prior authorization as of June 30, 2024.

About Encompass Health
Encompass Health (NYSE: EHC) is the largest owner and operator of rehabilitation hospitals in the United States. With a national footprint that includes 163 hospitals in 37 states and Puerto Rico, the Company provides high-quality, compassionate rehabilitative care for patients recovering from a major injury or illness, using advanced technology and innovative treatments to maximize recovery. Encompass Health is ranked as one of Fortune's World's Most Admired Companies and Becker's Hospital Review's 150 Top Places to Work in Healthcare. For more information, visit encompasshealth.com, or follow us on our newsroom, Twitter, Instagram and Facebook.

Forward-Looking Statements
Statements contained in this press release which are not historical facts, such as the timing and amounts of dividends and common stock repurchases, are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. In addition, Encompass Health, through its senior management, may from time to time make forward-looking public statements concerning the matters described herein. All such estimates, projections, and forward-looking statements speak only as of the date hereof, and Encompass Health undertakes no duty to publicly update or revise such forward-looking statements, whether as a result of new information, future events, or otherwise. Such forward-looking statements are necessarily estimates based upon current information and involve a number of risks and uncertainties. Actual events or results may differ materially from those anticipated in these forward-looking statements as a result of a variety of factors. While it is impossible to identify all such factors, factors which could cause actual events or results to differ materially from those estimated by Encompass Health include, but are not limited to, the legal, regulatory and administrative developments that occur at the federal, state and local levels; general conditions in the economy and capital markets, including any instability or uncertainty related to armed conflict or an act of terrorism, governmental impasse over approval of the United States federal budget, an increase in the debt ceiling, or an international sovereign debt crisis; Encompass Health's ability to comply with extensive, complex, and ever-changing regulations in the healthcare industry; potential disruptions, breaches, or other incidents affecting the proper operation, availability, or security of Encompass Health's information systems, including unauthorized access to or theft of patient, business associate, or other sensitive information; changes, delays in (including in connection with resolution of Medicare payment reviews or appeals), or suspension of reimbursement for Encompass Health's services by governmental or private payors; the price of our common stock which could adversely affect our willingness and ability to repurchase common stock, and other factors which may be identified from time to time in Encompass Health's SEC filings and other public announcements, including Encompass Health's Form 10‑K for the year ended December 31, 2023, and Form 10-Q for the quarter ended Mar. 31, 2024.

Media Contact:
Polly Manuel | 205-970-5912
polly.manuel@encompasshealth.com

Investor Relations Contact:
Mark Miller | 205-970-5860
mark.miller@encompasshealth.com   

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SOURCE Encompass Health Corp.

FAQ

What is the new quarterly dividend for Encompass Health (EHC) stock?

Encompass Health (EHC) has increased its quarterly dividend by 13% to $0.17 per share, payable on October 15, 2024, to shareholders of record on October 1, 2024.

How much has Encompass Health (EHC) authorized for stock repurchases?

Encompass Health (EHC) has reset its common stock repurchase authorization to $500 million, providing substantial flexibility for future buybacks.

When will Encompass Health (EHC) pay its next dividend?

Encompass Health (EHC) will pay its next quarterly dividend of $0.17 per share on October 15, 2024, to shareholders of record as of October 1, 2024.

How much stock did Encompass Health (EHC) repurchase in Q2 2024?

Encompass Health (EHC) repurchased approximately $17 million of its common stock during the second quarter of 2024.