CVS/Caremark (NYSE: CVS) announced board approval of a stock repurchase plan of up to $5 billion. With approximately 1.6 billion shares outstanding and assuming that the company completes the program in 12 months, the repurchase yields $3.13 per share.
PAYOUT YIELD ANALYSIS
The annualized dividend of $0.24 plus the $3.13 per share from the repurchase program results in a projected Total Payout of $3.37. At a stock price of $38, the projected Total Payout Yield is 8.9%.
- Payout Yield Staff