WOONSOCKET, R.I. — CVS Caremark announced that its board of directors has approved a new share repurchase program for up to $6 billion of the company's outstanding common stock.
The share repurchase authorization, which is effective immediately, permits the company to effect the repurchases from time to time through a combination of open market repurchases, privately negotiated transactions, accelerated share repurchase transactions, and/or other derivative transactions.
The company also stated that this new share repurchase program is expected to be completed over a multiyear period. CVS Caremark intends to provide 2013 guidance and to outline its capital allocation strategy during its upcoming Analyst Day, to be held on Dec. 13. At that time, the company will provide its assumption for the amount of share repurchases expected to be completed during 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. We have a highly disciplined approach to capital allocation and 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,” stated Dave Denton, EVP and CFO of CVS Caremark.
CVS Caremark also announced that its board has approved a quarterly dividend of 16.25 cents per share on the common stock of the corporation, payable Nov. 2 to holders of record on Oct. 22.