Baxter raises dividend as $2 billion share buyback approved

Deerfield-based Baxter International Inc., the maker of blood products and intravenous drugs, raised its dividend 34 percent and said it authorized a new share buyback program of as much as $2 billion.

A quarterly dividend of 45 cents a share will be payable Oct. 1 to stockholders, the Deerfield, Illinois-based company said in a statement today. The increase represents an annual dividend rate of $1.80 per share compared with the previous yearly rate of $1.34.

Baxter still has about $450 million under a previous $2.5 billion buyback program approved in December 2010. The shares will be repurchased at times and amounts to be determined by Baxter based on market conditions, according to the statement.

“Baxter remains committed to a disciplined capital allocation strategy, which includes returning value to shareholders through both dividends and share repurchases,” Robert Hombach, chief financial officer, said in the statement.