Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

CVS Plans to Repurchase as Much as $6 Billion in Shares

CVS Caremark Plans to Buy Back Up to $6 Billion in Shares
CVS Caremark Corp. rose 1.2 percent to $47.98 in New York trading. The shares have risen 35 percent in 12 months. Photographer: David Paul Morris/Bloomberg

Sept. 19 (Bloomberg) -- CVS Caremark Corp., the largest provider of prescription drugs in the U.S., plans to buy back as much as $6 billion in shares.

The repurchase authorization is effective immediately and will take place over multiple years, the Woonsocket, Rhode Island-based company said today in a statement.

CVS plans to repurchase $3 billion to $4 billion annually in shares over the next several years, Chief Financial Officer David Denton told analysts Sept. 5. The retailer has gained customers after Walgreen Co. last year ended a contract to sell prescriptions through employee-benefits manager Express Scripts Holding Co.

While Walgreen and Express Scripts have renewed their contract, CVS said last month it expects to retain at least half of those customers.

CVS also said it would pay a quarterly dividend of 16.25 cents on Nov. 2 to holders of record as of Oct. 22.

The stock rose 0.7 percent to $47.71 at the close in New York. The shares have risen 34 percent in 12 months.

To contact the reporter on this story: Chris Burritt in Greensboro at cburritt@bloomberg.net

To contact the editor responsible for this story: Robin Ajello at rajello@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.