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CVS Caremark Boosts Dividend 22%, Sets $6 Billion Buyback

CVS Caremark Corp. (CVS), the largest provider of prescription drugs in the U.S., boosted its dividend by 22 percent and approved a share buyback for as much as $6 billion.

The quarterly dividend of 28 cents a share is payable Feb. 3 to holders of record on Jan. 23, the Woonsocket, Rhode Island-based said in a statement. The share repurchase is effective immediately and will be completed over a period of several years.

Adjusted profit will be $4.36 to $4.50 in 2014, the company said. Analysts had projected $4.47, on average.

CVS rose 4.3 percent to $69.69 at the close in New York. The shares have added 44 percent this year, compared with a 27 percent gain for the Standard & Poor’s 500 Index.

To contact the reporter on this story: Niamh Ring in New York at nring@bloomberg.net

To contact the editor responsible for this story: Cecile Daurat at cdaurat@bloomberg.net

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