By Ameet Sachdev | Mead Johnson Nutrition Co. said Wednesday it plans to buy back $300 million in stock. The repurchase program is primarily intended to offset future dilution expected from shares that will be used for executive compensation in the next three to five years, Mead Johnson said.

The Glenview-based infant formula company also increased its dividend to 22.5 cents a share, up from 20 cents a share,
for the quarter ending March 3.

 ”These decisions by our board are based on the company’s solid financial
performance over the past year, as well as confidence in our future
growth prospects and ability to generate strong cash flow,” Stephen
Golsby, chief executive officer, said in a statement. “While our number
one objective is to use our cash flow to drive profitable growth, we
believe returning cash to shareholders in teh form of dividends and
stock repurchases also reflects our commitment to enhancing shareholder
value.”
 
The dividend will be paid on April 1 to shareholders of record on March
24.