Allergan (AGN) Initiates Qtr. Dividend at 70c/Share; Approves $10B to Stock Buyback Plan

November 2, 2016 6:32 AM EDT

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Allergan (NYSE: AGN) initiated a quarterly dividend of $0.70 per share, or $2.8 annualized.

The dividend will be payable on March 28, 2017, to stockholders of record on February 28, 2017, with an ex-dividend date of February 24, 2017.

The annual yield on the dividend is 1.3 percent.

Allergan plc announced that it has completed its initial $5 billion in share repurchases under its previously announced share repurchase program, and its Board of Directors has approved the expansion of the share repurchase program and the initiation of a regular quarterly cash dividend for shareholders as part of the Company's capital allocation strategy. This reflects the Company's conviction in its business strategy and strong future cash flow position, allowing for periodic return of cash to shareholders through dividends and a significant share buyback program while maintaining investment grade ratings and continuing investment in stepping stone and accretive acquisitions.

Pursuant to the Board authorization, Allergan entered into a variable tenor accelerated share repurchase program (ASR) under which the Company will repurchase $10 billion of its ordinary shares. Approximately $8 billion worth of shares are expected to be received and retired by Allergan during November 2016, based upon Allergan stock price at certain reference points during the month. The remaining shares, if any, under the ASR will be received and retired by the third quarter of 2017, although they could be received earlier if the ASR execution is completed sooner. Up to 50 percent of the ASR Program will be collared, based upon the Allergan stock price over a reference period.

This ASR follows completion of the Company's repurchase of $5 billion in common shares as part of its previously announced share repurchase program. In completing the initial $5 billion in share repurchases, the Company repurchased approximately 21 million shares in the open market at an average share price of $237.59.

For a dividend history and other dividend-related data on Allergan (AGN) click here.

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