Covanta's Cash Dividend Signifies Strategy Shift; JP Morgan (CVA)

Covanta CVA recently announced a special cash dividend and also a share buyback. JP Morgan believes this signifies that Covanta is exiting its international development and is focusing on returning cash to shareholders. Covanta is a company specializing in the conversion of waste to energy. JP Morgan Andrew Smith said, "Covanta recently announced a $1.50 per share (~$230 million) special cash dividend, which was about 10% of the company’s market capitalization. In addition to returning proceeds from the sale of its Asian assets we expect the company to pay additional special cash dividends as its cash on hand builds." Covanta is currently rated Overweight wit ha price target of $20.00. Shares of CVA are currently trading at $15.12.