On October 25, 2018 Merck (NYSE:MRK), known as MSD outside the United States and Canada, reported that its Board of Directors has approved a 15 percent increase to the company’s quarterly dividend, raising it to $0.55 per share from $0.48 per share of the company’s outstanding common stock (Press release, Merck & Co, OCT 25, 2018, View Source [SID1234530145]). Payment will be made on Jan. 8, 2019, to shareholders of record at the close of business on Dec. 17, 2018. The Board also authorized an additional $10 billion of treasury stock purchases with no time limit for completion. The company has entered into a $5 billion accelerated share repurchase program under its expanded authorization.

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"Increasing the dividend and authorizing additional opportunistic share repurchases are driven by our commitment to a balanced capital allocation strategy and supported by our strong balance sheet and cash flow generation that provide us the flexibility to return cash to shareholders while also investing in our pipeline, innovation and growth," said Kenneth C. Frazier, chairman and chief executive officer, Merck, "Even with these actions, we will continue to maintain ample capacity for business development, which remains a priority."

Merck last announced a dividend increase in November 2017, when the Board increased the dividend from $0.47 to $0.48 per common share.