Benzinga

Pfizer Ups Dividend 10%, Announces $10B Share Buyback

By Gordon Wilcox

December 12, 2011 11:34 AM

Dow component Pfizer (NYSE: PFE [FREE Stock Trend Analysis]), the largest U.S. pharmaceuticals company, said it is raising quarterly 10% to 22 cents a share from 20 cents. The company also announced a $10 billion share buyback plan.

The new dividend is payable March 6, 2012, to shareholders of record at the close of business on February 3, 2012.

The first-quarter 2012 cash dividend will be the 293rd consecutive quarterly dividend paid by Pfizer, the company said in a statement.

"While the dividend level remains a decision of the board, we continue to target a dividend payout ratio of approximately 40 percent by the end of 2013. In addition, we currently expect to repurchase approximately $5 billion of our common stock in 2012, with the remaining authorized amount available in 2013 and beyond," Pfizer CEO Ian Read said in the statement.