Chemed Corporation (NYSE: NYSE:CHE), a Cincinnati-based company operating VITAS Healthcare and Roto-Rooter, has sanctioned an additional $300 million for its share repurchase program. The decision, approved by the Board of Directors, was announced today, Monday.
The increase in the buyback program is to be financed through operational cash flows and the company's revolving credit facility. This move underscores the firm's confidence in its financial health and commitment to return value to shareholders.
VITAS Healthcare and Roto-Rooter, Chemed's subsidiaries, are national leaders in their respective fields. VITAS specializes in end-of-life hospice care, while Roto-Rooter is renowned for its plumbing and drain cleaning services.
In relation to this announcement, Chemed's representative, Michael D. Witzeman, issued forward-looking statements concerning the company's future performance. However, he also cautioned investors about the inherent risk tied to such projections. The discrepancies between these predictions and actual results may be significant, serving as a reminder for investors to exercise due diligence when making decisions based on forward-looking statements.
InvestingPro Insights
Chemed Corporation (NYSE: CHE) continues to demonstrate financial strength, as evidenced by the InvestingPro data. With a market capitalization of $8810M and a P/E ratio of 36.39, the company is well-positioned in the market. Over the last twelve months as of Q3 2023, the company has seen a revenue growth of 4.5%, signaling a positive trend in its financial performance.
InvestingPro Tips highlights that Chemed has a history of strong earnings which have allowed for consistent dividend payments. The company has raised its dividend for 14 consecutive years and has maintained dividend payments for a notable 53 years. This consistency is a testament to the company's financial stability and commitment to shareholder value. Additionally, the company's stock is trading near its 52-week high, indicating a strong market performance.
These insights, along with over 20 additional InvestingPro Tips, are available for those looking to make informed investment decisions. They provide a comprehensive view of the company's financial health and market performance, offering investors a valuable tool for their decision-making process.
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