CVS Health Sets New $10 Billion Buyback Program, Ups Dividend

CVS Health announced on Tuesday a new $10 billion stock buyback program, effective immediately, which is expected to be completed over a multi-year period. The drugstore chain said this was in addition to the $2.7 billion remaining in its previous repurchase program. The company also said it was raising its quarterly dividend by 27% to 35 cents share, payable Feb. 2, 2015 to shareholders of record on Jan. 22. Speaking at the company's analyst gathering in New York, Chief Financial Officer Dave Denton affirmed the 2014 earnings outlook, and said he expects 2015 adjusted earnings per share in the range of $5.05 to $5.19, which surrounds the FactSet consensus analyst estimate of $5.11. The stock edged up 0.2% in premarket trade. Through Monday, the stock had run up 26% this year, compared with a 7.6% gain in the S&P 500.