Pfizer continues reshaping strategy
Pfizer has announced plans to increase its quarterly dividend by 26% to 24 cents per share for the first quarter of 2006 following its 'continuing strong cash flow from operations'.
Pfizer has announced plans to increase its quarterly dividend by 26% to 24 cents per share for the first quarter of 2006 following its 'continuing strong cash flow from operations'.
The increase, payable on 7 March 2006 to shareholders of record on 10 February 2006, is part of a series of actions to enhance short- and long-term returns for shareholders and 'build the investment value' of the company, according to chairman and chief executive Hank McKinnell. Earlier in 2005 the company began a 'productivity initiative' designed to streamline its worldwide operations and in turn generate $4bn in annual cost savings and cash flow by 2008.
Headquartered in New York, US, Pfizer has repatriated approximately $37bn in foreign earnings in 2005 in order to reduce debt, enhance its balance sheet and invest in business opportunities. The company has also purchased $4bn in common stock in 2005 and will continue to buy back its stock in 2006.
Pfizer's 2005 r&d investments are expected to total around $7.6bn, while its investment in licensing agreements and acquisitions in the year exceeded $2bn.
The company is due to provide a 'comprehensive review' of its strategy, operating performance, new product pipeline and financial outlook at its analyst meeting on 10 February 2006.