FIS (NYSE:FIS) today announced that its Board of Directors approved a share repurchase program under which it authorized the company to repurchase up to 100 million shares of its Class A common stock. Also, the FIS Board simultaneously approved an 11% increase in the company’s quarterly dividend to $0.39 per share from $0.35 per share previously.

Gary Norcross, FIS chairman, president and chief executive officer, commented:

“We believe that FIS shares are trading well below intrinsic value and that repurchasing shares of FIS is a good use of capital at this time. Our strong business fundamentals and robust free cash flow enable us to continue investing for growth, both organically and through M&A, while continuing to pay down debt to meet our leverage target and return capital to our shareholders.

The Board’s decision to approve a new share repurchase program in conjunction with an increase in our quarterly dividend reflects continued confidence in the strength of our financial position, the durability of our business model and the future of FIS.”

The repurchase program has no time limit and may be suspended for periods, amended or discontinued at any time. Any shares acquired will be available for general corporate purposes.

The next quarterly dividend is payable on March 26, 2021, to shareholders of record as of close of business on March 12, 2021.

FIS is set to report its results for the fourth quarter of 2020 on February 9, 2021. Let’s recall that, in the third quarter of 2020, FIS’s revenue increased 13% to $3,197 million, primarily due to the July 31, 2019 acquisition of Worldpay, Inc. Adjusted net earnings were $887 million or $1.42 per diluted share.

Net earnings attributable to common stockholders for the third quarter of 2020 totalled $20 million or $0.03 per diluted share.