CVS Health Sets First Dividend Boost, Stock Buyback Since 2017
December 09 2021 - 7:33AM
Dow Jones News
By Colin Kellaher
CVS Health Corp. on Thursday said it plans to raise its dividend
and buy back stock for the first time since 2017 in a bid to boost
returns to shareholders.
The Woonsocket, R.I., healthcare-services giant said it will
raise its annual dividend rate by 10%, to $2.20 from $2, effective
with the next dividend in February.
The new payout represents an annual yield of about 2.36% based
on Wednesday's closing price of $93.10, up from about 2.15%.
CVS said it also has authorized a $10 billion share-repurchase
program, which it will be used to at least offset share count
dilution next year.
CVS, which has about 1.32 billion shares outstanding, sports a
market capitalization of nearly $123 billion.
Shares of CVS rose about 2.5% in premarket trading Thursday.
Write to Colin Kellaher at colin.kellaher@wsj.com
(END) Dow Jones Newswires
December 09, 2021 07:18 ET (12:18 GMT)
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