AbbVie to buy back $10 billion of shares, raises dividend

(Reuters) – AbbVie Inc <ABBV.N> said on Thursday its board had approved a $10 billion stock repurchase program, and the drugmaker also increased its quarterly dividend, as it reaped the benefits of U.S. tax law changes.

The Chicago-based company’s shares were up nearly 1 percent at $114.04 in mid-afternoon trading.

AbbVie, which forecast an adjusted effective 2018 tax rate of 9 percent last month, joins other companies such as Pfizer Inc <PFE.N> and Boeing <BA.N> in announcing share buybacks and dividend raise.

The largest U.S. tax overhaul in 30 years includes cuts to corporate tax rates and delivers a windfall to major U.S. companies.

AbbVie said it was raising its quarterly dividend to 96 cents per share from 71 cents.

(Reporting by Manas Mishra in Bengaluru; Editing by Maju Samuel)