WOONSOCKET, R.I. — The board of CVS Caremark Corp. has approved a new share repurchase program for up to $6 billion of the company’s outstanding common stock.
The company said Wednesday that this new stock buyback program is slated to be completed over a multiyear period.
Plans call for CVS Caremark to provide 2013 guidance and outline its capital allocation strategy at its annual Analyst Day event, scheduled for Dec. 13. The company said that at the event it will give its projection for the amount of share repurchases expected to be completed in 2013.
"We’re very pleased with the board’s decision to approve this new share repurchase program and believe it reflects their confidence in CVS Caremark’s growth outlook as well as an ongoing commitment to create shareholder value," Dave Denton, executive vice president and chief financial officer of CVS Caremark, said in a statement. "We are committed to using our strong free cash flow to fund investments that drive returns in addition to dividends and value-enhancing share repurchases."
In reporting second-quarter results last month, Denton said CVS Caremark bought back 26.6 million shares during the quarter, drawing on about $1.2 billion of its existing repurchase authorization, and expects to complete the remaining $1 billion of that authorization this year. The company had $3 billion left under the current authorization at the start of 2012.
Also on Wednesday, CVS Caremark’s board approved a quarterly dividend of 16.25 cents per share of common stock, payable on Nov. 2 to shareholders of record as of Oct. 22.
