Feb 2 2011
Pfizer Inc. (NYSE: PFE) today announced that its board of directors authorized a new share repurchase program of up to $5 billion of its common stock. This is in addition to approximately $4 billion of authorization remaining under its current repurchase program and increases the company's total repurchase authorization to $9 billion. Pfizer currently expects to repurchase approximately $5 billion of its common stock during 2011 with the remaining authorized amount available in 2012 and beyond.
"This new repurchase program demonstrates our confidence in the business and our commitment to building shareholder value," said Ian Read, Pfizer president and chief executive officer. "We believe that the share repurchases are a prudent use of our capital and expect to maintain the financial flexibility to continue dividend increases and pursue business development. While the dividend level remains a decision of the board and will continue to be evaluated in the context of future business performance, barring significant unforeseen events, we continue to target a dividend payout ratio comparable to the current industry average of approximately 40 percent in about three years."
As of December 31, 2010, Pfizer had repurchased approximately 60 million shares under the current repurchase program.