CVS Health sets $10B buyback plan

CVS Health (NYSE:CVS) has approved a new $10 billion stock repurchase program and boosted its quarterly dividend by 27 percent to 35 cents a share. The boost will cost the company $90 million a quarter, reported MarketWatch.

In general, the company expects earnings to grow between 13 and 16 percent in 2014. The retailer also expects free cash flow between $5.9 billion and $6.2 billion and cash from operations between $7.6 billion and $7.9 billion.

"Some of that cash will be used to invest in the business, such as through strategic, bolt-on acquisitions that drive continued share gains," CFO Dave Denton told MarketWatch.

CVS recently changed its name to CVS Health to reflect its growing commitment to promoting healthy lifestyles. The company also announced it would be opening a technology development center in Boston this winter.

Although the company lost money when it stopped selling tobacco products, that cost was offset by sales made in the pharmacy, lifting last quarter's revenue by 9.7 percent.

For more:
-See this MarketWatch article

Related stories:
Walgreens to remain in US
CVS to acquire Navarro, largest drugstore in Hispanic market
CVS furthers healthy focus with new Fit Choices
Walgreens launches 'Way to Well' tour
ShopRite to open first in-hospital pharmacy

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