Drugmaker Merck & Co., Inc. (
) on Wednesday announced its board of directors has authorized an
additional $5 billion share repurchase plan.
The share buybacks can be made on the open market, in block
transactions, or in privately-negotiated transactions. There is
also no time limit on the repurchase plan.
In total, Merck now plans to buy back some $6.4 billion of its
own shares, considering the $1.4 billion remaining on its prior
repurchase plan, which was implemented in late 2009.
CEO Kenneth C. Frazier said in a statement that "Merck has a
history of leadership in returning cash to shareholders. Together
with our strong dividend, today's action reflects our confidence in
Merck's strategy and demonstrates our commitment to delivering
Merck shares were mostly flat in premarket trading
The Bottom Line
Shares of Merck (
) have a 4.34% dividend yield, based on last night's closing stock
price of $35.06. The stock has technical support in the $32-$33
price area. If the shares can firm up, we see overhead resistance
around the $37-$38 price levels.
Merck & Co., Inc. (
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.4 out of 5 stars.
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