CVS sets $10 billion stock buyback program, boosts dividend for first time in 4 years

Shares of CVS Health Corp. CVS, +0.18% roseate 0.6% successful premarket trading Thursday, aft the cause store concatenation and wellness attraction services institution announced astatine its Investor Day a $10 cardinal banal repurchase program, a 10% boost to its dividend and lifted its full-year net outlook. The yearly dividend complaint was raised to $2.20 a stock from $2.00 a share, which increases the implied dividend output astatine Wednesday's banal closing terms to 2.36% from 2.15%, which compares with the implied output for the S&P 500 SPX, +0.31% of 1.31%. CVS said it was the archetypal clip it accrued its dividend and repurchased banal since 2017. Separately, the institution said it present expects 2021 adjusted EPS of "at least" $8.00, compared with erstwhile guidance of $7.90 to $8.00, and that the gross outlook was raised to "at least" $290.3 cardinal from $286.5 cardinal to $290.3 billion. The FactSet statement is for EPS of $7.96 and gross of $288.4 billion. The institution besides presented its strategy to marque wellness attraction "more convenient, personalized and affordable," which included advancing superior attraction transportation capabilities, launching caller all-payer wellness products and services, driving a digital-first attack to grow its scope and enhancing omnichannel wellness services. The banal has rallied 36.3% twelvemonth to day done Wednesday portion the S&P 500 has gained 25.2%.