AmerisourceBergen hikes dividend, launches share repurchase program

VALLEY FORGE, Pa. Wholesale drug and health services giant AmerisourceBergen has boosted its quarterly dividend by 33 percent, to 10 cents per share, and authorized a new $500 million share repurchase program, effective immediately.

ABC said it will use the new program to repurchase its outstanding shares of common stock, subject to market conditions. The company just completed its last share repurchase program earlier this week.

“Increasing our dividend and authorizing a new share repurchase program illustrates our confidence in delivering long-term shareholder value,” ABC president and chief executive R. David Yost said.

ABC said it expects to spend approximately $350 million to repurchase common shares in fiscal year 2009. The company currently has approximately 156 million common shares outstanding.