CVS Caremark Corp. expects earnings per share to grow more than 10 percent next year, and the drugstore chain plans to return some money to its shareholders through a higher dividend.
The Woonsocket, R.I., company said it expects adjusted earnings of between $4.36 and $4.50 per share in 2014. Analysts surveyed by FactSet expect, on average, earnings of $4.46 per share.
The company said its forecast assumes the completion of $4 billion in share buybacks next year and the second-half launch of a recently announced joint venture with prescription drug distributor Cardinal Health to buy generic drugs.
CVS Caremark also said its board approved a 5-cent increase in its quarterly dividend, to 27.5 cents per share. The higher payout will be made Feb. 3 to shareholders of record on Jan. 23.
The company’s board also approved a new stock buyback program for up to $6 billion in shares. That is expected to be completed over several years.
via The Associated Press