Buybacks Keep Coming on Strong (ANN, DDS, GPS, HPQ, LO, MRVL, JWN, RSH, RMBS)

Earlier this year was the trend of hiking dividends, but now that so many companies have raised their quarterly payouts we are seeing the ‘other’ shareholder-friendly action taking place.  Buybacks are still coming strong.  We have seen new buybacks and solid buyback updates this week from the likes of Ann Taylor Stores Corporation (NYSE: ANN), Dillard’s Inc. (NYSE: DDS), Gap Inc. (NYSE: GPS), Hewlett-Packard Co. (NYSE: HPQ), Lorillard, Inc. (NYSE: LO), Marvell Technology Group Ltd. (NASDAQ: MRVL), Nordstrom Inc. (NYSE: JWN), RadioShack Corporation (NYSE: RSH), and Rambus Inc. (NASDAQ: RMBS).  We have outlined and updated each below with some added color on size.

Ann Taylor Stores Corporation (NYSE: ANN) this morning announced with earnings that it has voted to expand the existing share repurchase authorization to $400 million, which the company said results in nearly $260 million currently available under the authorization to repurchase shares.  Its market cap is only $909 million.

Dillard’s Inc. (NYSE: DDS) authorized the repurchase of up to $250 million of its Class A shares in the open market or through privately negotiated transactions.  During the second quarter of 2010, Dillard’s completed all share repurchases under its previous 2007 buyback plan of $200 million. The market cap is $1.44 billion.

Gap Inc. (NYSE: GPS) announced with earnings that it had authorized a new $750 million share repurchase program after ending the quarter with $150 million remaining under the $1 billion share repurchase program authorized in February this year.

Hewlett-Packard Co. (NYSE: HPQ) said last night with earnings that it spent some $2.6 billion in cash to repurchase approximately 55 million shares of common stock in the open market.

Lorillard, Inc. (NYSE: LO) just hiked its dividend to $1.125 from $1.00, but it approved a $1 billion shares buyback plan. Not bad for an $11.4 billion market cap.

Marvell Technology Group Ltd. (NASDAQ: MRVL) announced last night with earnings that its board had authorized a program to repurchase up to $500 million of its outstanding common shares.  It is subject to factors, but this compares to a market cap of $9.6 billion.

Nordstrom Inc. (NYSE: JWN) approved a $500 million stock buyback on Thursday, which came after earlier earnings.  This compares to a $6.8 billion market cap.

RadioShack Corporation (NYSE: RSH) raised the amount under its authorization for share buybacks from $290 million up to $500 million. This sounds great with a $2.4 billion market cap except this means that there are no interested buyers.

Rambus Inc. (NASDAQ: RMBS) last night even set a $90 million accelerated share buyback plan that is effectively being prepaid through JPMorgan.  The company already had an authorization to buy up to 10 million shares of common stocks. Its market cap is $2.1 billion.

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JON C. OGG