Merck & Co (MRK) will raise its quarterly dividend by 14.6 percent to $0.55 per share in the fourth quarter of 2018. This is the first double digit dividend increase by the biopharmaceutical company since 2011.

The next dividend will be paid on January 8, 2019, to shareholders of record at the close of business on December 17, 2018. The new annualized dividend of $2.20 per share yields 3.1% for MRK at a stock price of $69.96.

“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 & Co., Inc. is a global healthcare company known as MSD outside of the United States and Canada. The company's core product categories include diabetes, cancer, vaccines and hospital acute care. Its products include prescription medicines, vaccines, biologic therapies, and animal health products.