CBS Corp. (CBS:US), owner of the most-watched U.S. television network, will raise its quarterly dividend 20 percent to 12 cents and expand a stock buyback program to as much as $4.7 billion.
The new dividend is payable on Oct. 1 to shareholders on record as of Sept. 10, the New York-based media company said today in a statement. The share repurchase program, initiated in January 2011, was increased by 57 percent. CBS said it has already bought back $1.7 billion in stock under the effort.
CBS is stepping up its rewards to shareholders after an increase in net income of about 80 percent last year. In addition to company’s TV business, CBS has operations in the publishing, radio, outdoor advertising and Internet markets.
The shares rose 4.9 percent to $32.63 at the close in New York. CBS’s stock has climbed 20 percent this year.
CBS plans to accelerate the pace of its buyback program and complete it by the end of 2014. The company will be repurchasing Class B common stock.
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