FIS Updates Capital Allocation Strategy
- Prioritizes investments for growth, both organically and through mergers & acquisitions (M&A).
- Accelerates annual dividend growth rate to 20% per year beginning in 2022 to gradually increase the company’s dividend payout ratio to approximately 35%.
- Returns excess capital to shareholders through ongoing share repurchase under existing 100 million share authorization.
FIS® (NYSE: FIS), a global leader in financial services technology, announced an updated capital allocation strategy today that prioritizes investment in the business to drive growth while simultaneously returning capital to shareholders.
“Our priority is to invest in strategic growth initiatives in order to pursue multiple opportunities for both organic and inorganic growth,” said
As part of its updated capital allocation strategy, FIS will continue to invest heavily in strategic growth initiatives, including the development of new solutions that will accelerate revenue growth and expand the company’s total addressable market. The company’s research and development program has a strong track record of producing innovative solutions that improve customer outcomes while also driving incremental growth, including FIS Modern Banking Platform, Payments One, Digital One, Code Connect, Access Worldpay, the FIS Premium Payback Loyalty Network, and RealNet.
In addition, FIS has successfully augmented its new solution development and revenue growth with M&A, and will continue to prioritize these investments. The company expects to maintain significant financial capacity for M&A while simultaneously growing its dividend and repurchasing shares.
FIS is increasing its expected annual dividend growth rate to 20% per year, an increase from 10% per year previously, resulting in approximately
The company opportunistically repurchases shares under its existing 100 million share authorization, announced in
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
Senior Vice President
Executive Vice President
FIS Corporate Finance and Investor Relations