In premarket trading on Monday, Bristol-Myers Squibb stock climbed 1.9 % after the pharma giant announced it would increase its quarterly dividend and expand its share buyback program.

In comparison to Friday's closing price, the quarterly dividend for 2022 was set at 54 cents per share, an increase of a little over 10%, and an implicit yield of 3.9 %.

The board of directors of the New York-based pharmaceutical business recently approved a $15 billion stock buyback plan, having used up all but $200 million of the present program.

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Chief executive officer Giovanni Caforio stated that the company was dedicated to a constant balanced capital allocation strategy.

“With significant free cash flow of $45 billion to $50 billion expected between 2021 and 2023, investment in business development continues to be a key priority for the company in driving innovation and sustained growth as we return capital to shareholders through the dividend increase and expanded share repurchase authorization,” Caforio added.

Dividends will account for slightly under $5 billion in payouts each year at the increased rate, with the buyback program accounting for the majority of the total return to shareholders.