(Bloomberg) — CVS Health Corp. plans to buy back as much as $10 billion of stock and pay out more cash to shareholders as the biggest U.S. seller of prescription drugs benefits from the increasing number of Americans with insurance coverage.
The share buyback will occur over a multi-year period, the Woonsocket, Rhode Island-based company said in a statement today before a briefing for analysts and investors. CVS will raise its quarterly dividend by 27 percent, to 35 cents a share, the company said.
"We've established a solid track record of delivering on our promises, and our results prove that out," Chief Financial Officer Dave Denton said in the statement. "Looking ahead, we are targeting solid, long-term enterprise growth and expect to generate a significant amount of cash that will be available to enhance returns."
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