AstraZeneca (LSE: AZN) announced a 7% increase in its annualised dividend for 2024, reflecting confidence in its financial performance and cash generation. The dividend will rise by 20 US cents to $3.10 per share.
This increase follows a year of significant profit growth for AstraZeneca. Pretax profit surged to $6.90 billion in 2023, up from $2.50 billion in 2022. However, revenue showed a modest 3.3% increase to $45.81 billion. Notably, a 21% jump in oncology revenue was offset by declines in other areas.
AstraZeneca’s strong financial position is bolstered by a significant reduction in cost of sales. The company slashed these costs by 33% in 2023, down to $8.27 billion from $12.39 billion.
The news of the dividend hike was met positively by investors, with AstraZeneca shares up 1.2% on Thursday morning.
Subscribe to Investomania for more AstraZeneca news and updates.