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Investing.com — Bristol-Myers Squibb (NYSE:BMY) stock rose 1.9% in premarket trading on Monday after the pharma giant said it will raise its quarterly dividend and expand its share buyback.
The quarterly dividend for 2022 was set at 54 cents a share, an increase of just over 10%, offering an implicit yield of 3.9%, measured against Friday’s closing price.
The New York-based pharmaceutical company’s board of directors also gave the go ahead for a $15 billion stock buyback plan, having exhausted al but $200 million of the current program.
Giovanni Caforio, chief executive officer, said the company remained committed to a consistent balanced capital allocation strategy.
“With significant free cash flow of $45 billion to $50 billion expected between 2021 and 2023, investment in business development continues to be a key priority for the company in driving innovation and sustained growth as we return capital to shareholders through the dividend increase and expanded share repurchase authorization,” Caforio said.
At the new rate, dividends will account for just under $5 billion a year in payouts, leaving most of the total return to shareholders in the buyback program.
