FIS ® (NYSE: FIS), a global leader in financial services technology, announced that its Board of Directors has approved a 21% increase in the quarterly dividend of $0.47 per share from $0.39 per share. The dividend is payable March 25, 2022, to FIS shareholders of record as of close of business on March 11, 2022.
"The Board's decision to increase our quarterly dividend reflects continued confidence in the strength of our financial position, the durability of our business model and the future of FIS," said Gary Norcross, FIS chairman and chief executive officer. "Our strong business fundamentals and robust free cash flow enable us to simultaneously invest for growth, meet our leverage targets and return capital to our shareholders."
Consistent with its capital allocation strategy, FIS plans to increase its annual dividend approximately 20% per year, beginning with the quarterly dividend payable in March 2022. By accelerating its target annual dividend growth rate to approximately 20% from approximately 10% previously, the company intends to gradually increase its dividend payout ratio over several years to approximately 35% of adjusted net earnings from approximately 25% in 2021.
FIS is a leading provider of technology solutions for merchants, banks and capital markets firms globally. Our employees are dedicated to advancing the way the world pays, banks and invests by applying our scale, deep expertise and data-driven insights. We help our clients use technology in innovative ways to solve business-critical challenges and deliver superior experiences for their customers. Headquartered in Jacksonville, Florida, FIS ranks #241 on the 2021 Fortune 500 and is a member of Standard & Poor's 500® Index. To learn more, visit www.fisglobal.com . Follow FIS on Facebook , LinkedIn and Twitter ( @FISGlobal ).
Statement Regarding Forward-Looking Information
The statements contained in this release that are not purely historical are forward-looking statements within the meaning of the U.S. federal securities laws. Statements that are not historical facts, including statements about anticipated financial outcomes, expected dividends and share repurchases, as well as other statements about our expectations, beliefs, intentions, or strategies regarding the future, or other characterizations of future events or circumstances, are forward-looking statements. These statements relate to future events and our future results and involve a number of risks and uncertainties. Actual results, performance, dividends or achievement could differ materially from those contained in these forward-looking statements. Forward-looking statements are based on management's beliefs as well as assumptions made by, and information currently available to, management. The risks and uncertainties to which forward-looking statements are subject include, without limitation, results of operations, financial condition, cash requirements, future prospects, and other factors that may be considered relevant by our Board of Directors in its discretion, in its determination of the amount, declaration and payment of future dividends, including changes in the growth rates of the markets for our solutions; legal and contractual restrictions on the payment of dividends that may exist in the future; unexpected or otherwise unplanned or alternative requirements or other uses with respect to the available cash flow of the Company, including but not limited to potential M&A opportunities or share repurchases; changes in general economic, business and political conditions; and other risks detailed in the "Statement Regarding Forward-Looking Information," "Risk Factors" and other sections of the Company's Annual Report on Form 10-K and other filings with the Securities and Exchange Commission. Except as required by applicable law or regulation, we do not undertake (and expressly disclaim) any obligation and do not intend to publicly update or review any of our forward-looking statements, whether as a result of new information, future events or otherwise.