CBS accelerates buyback program with $1.4B repurchase

CBS (NYSE: CBS and CBS.A) announced an acceleration of its stock repurchase program that was part of a February 27 announcement.

The company announced that it was buying back approximately 47 million shares of class B stock for $1.4 billion. The company did not comment on whether it intends to expand the $1.5 billion program announced on February 27. That announcement also detailed plans to hike the quarterly dividend to $0.22 effective with the March 7 declaration.

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PAYOUT YIELD ANALYSIS

With 776 million shares outstanding, the $1.5 billion repurchase will yield $1.93 per share. The new annual dividend of $0.88 combined with the $1.93 from the repurchase program will result in at Total Payout of $2.81 per share over the next 4 quarters. At $30 per share, the Total Payout Yield is projected to be 9.4%.

- Payout Yield staff

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