Zoetis Inc (ZTS) will raise its quarterly dividend to $0.105 per share. Zoetis also announced that it has authorized a $1.5 billion multi-year share repurchase program as part of its long-term capital allocation plans. The dividend is to be paid on Wednesday, March 1, 2017, to holders of record of the company’s common stock on Friday, January 20, 2017.

“Our consistent performance, the improvements to our cost structure, as well as the strength of our business model, have Zoetis well-positioned to generate cash for future growth and value creation opportunities,” said Juan Ramón Alaix, Chief Executive Officer at Zoetis. “Today’s new share repurchase program, along with the dividend increase, is a demonstration of our ongoing commitment to return excess capital to shareholders as part of our value proposition.”

“Our financial strength and improved cash flow allow us to balance disciplined investment in both internal and external growth opportunities with the return of excess capital to our shareholders through a flexible share repurchase program and a growing dividend,” said Glenn David, Executive Vice President and Chief Financial Officer.

Today’s dividend increase indicates an annualized rate of $0.42 per share and a yield of approximately 0.8% based on a $51.89 stock price.

Zoetis Inc. is an animal health company. Zoetis discovers, develops, manufactures and markets veterinary vaccines and medicines, complemented by diagnostic products, genetic tests, biodevices and a range of services. Zoetis serves veterinarians, livestock producers and people who raise and care for farm and companion animals worldwide. The company, formerly a subsidiary of Pfizer, went public in 2013 and has paid a dividend ever since.