Credit: Shutterstock photoDow stock Merck ( MRK ) announced a $10 billion stock buyback Tuesday and will raise its quarterly dividend by a penny to 48 cents, citing its "strong balance sheet" and consistent performance.
[ibd-display-video id=2966935 width=50 float=left autostart=true] The board increased the quarterly dividend from 47 cents per outstanding share paid last quarter. Merck will pay the dividend on Jan. 8 to shareholders of record at the close on Dec. 15.
Merck last announced a dividend increase in November 2016 when the board upped the payment to 47 cents from 46 cents per common share.
The board also authorized an additional $10 billion of treasury stock purchases with no time limit for completion, according to a press release.
IBD'S TAKE:Be sure to head to the Investor's Corner for more on how to generate income from dividend-paying stocks.
By the closing bell on the stock market today , Merck advanced 0.7% to finish at 54.93.
Shares have traded well below their 50-day moving average since late October when it withdrew its application for immuno-oncology drug Keytruda plus chemotherapy as a lung cancer treatment in Europe and pushed back a key trial to 2019.
RELATED:
Why Roche Cancer Trial Is Kick In The Teeth For Dow Stock Merck
This Biotech Just Neared A 17-Year High On Strong Cancer Regimen
Dow's Merck Plunges To 17-Month Low On Growing Keytruda Worries
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
