Invesco, MassMutual Announce $1 Bln Buyback, Partnership; Raises Dividend; Stock Up

(RTTNews) - Invesco Ltd. (IVZ) and its shareholder MassMutual announced Tuesday an agreement, under which the Investment management company will repurchase $1 billion of its Preferred Stock. In addition, Invesco raised its quarterly dividend.

Further, Invesco announced a new strategic product and distribution partnership with MassMutual's asset management unit Barings for U.S. Wealth channels.

In the pre-market trading, Invesco is 7.5% higher at $13.40 on the New York Stock Exchange.

In the partnership agreement, MassMutual, which owns about 18.2% of Invesco's common stock, plans to invest $650 million initially to help grow and expand the partnership's innovative wealth management products in the U.S.

Further, Invesco expects the $1 billion repurchase of its Series A Preferred Stock would be earnings accretive starting in the second half of 2025.

The all-cash repurchase is expected to be completed in May 2025, and will be funded through debt financing.

Invesco will repurchase $1 billion of its $4 billion of outstanding Series A Preferred Stock otherwise noncallable until May 2040. The companies said that there is possibility of future repurchases of the remaining $3 billion of Preferred Stock.

The repurchase will also help the company reduce debt, strengthen its balance sheet, and still allow room to invest in growth and return money to shareholders.

Invesco also announced it is raising its quarterly dividend to $0.210 per common share from $0.205.

The two companies have a long-standing partnership, with MassMutual having committed over $3 billion in previous investments and about $9 billion in Invesco-managed assets sold through MassMutual's various platforms.