CVS Caremark Boosts Dividend 22%, Sets $6 Billion BuybackNiamh Ring
CVS Caremark Corp., 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.