Shares of Pfizer Inc. edged up 0.3% in midday trade Monday, after the drug giant said it authorized a new $10 billion share repurchase program, and that it will raise its quarterly cash dividend by 6.3%. Pfizer said the new buyback program is in addition to the $6.4 billion remaining under the current repurchase program. Based on current share prices and 5.96 billion shares outstanding, $16.4 billion would represent 439.7 million shares, or about 7.4% of the shares outstanding. The new dividend of 34 cents a share, up from 32 cents a share, will be payable March 1 to shareholders of record on Feb. 2. The new annual dividend rate implies a dividend yield of 3.65%, compared with the implied yield for the SPDR Health Care Select Sector ETF of 1.45%, and for the Dow Jones Industrial Average of 2.07%. Pfizer’s stock has rallied 14.8% year to date, while the health care ETF has run up 21.9% and the Dow has climbed 25.7%.
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