In a sign that Pfizer Inc. (NYSE: PFE) has more cash on hand than the sense to use it wisely to create new drugs, its board approved a $10 billion share buyback. Pfizer has effectively cut costs, some via layoffs. R&D on new treatments is critical to the pharma company in a world of new age medicines, biotech and generics. Nonetheless, Pfizer believes it can increase shareholder returns by delivering cash the way that other public corporations like McDonald’s Corp. (NYSE: MCD) do. But a pharma company is not a fast-food chain.

The company announced:

The board of directors of Pfizer Inc. today declared a 24-cent third-quarter 2013 dividend on the company’s common stock, payable September 4, 2013, to shareholders of record at the close of business on August 2, 2013. The third-quarter 2013 cash dividend will be the 299th consecutive quarterly dividend paid by Pfizer.

In addition, the board of directors has authorized a new $10 billion share repurchase program to be utilized over time. This new program is in addition to the $3.9 billion of authorization remaining under the company’s current share repurchase program.

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