Zoetis

Capital allocation is disciplined. Zoetis continues to reinvest in R&D and manufacturing for biologics and diagnostics while returning capital via dividends and buybacks.

The board authorized a new 6 billion multi-year repurchase program in 2024; 4.9 billion remained as of 2025-06-30. First-half 2025 saw about 0.78 billion of treasury stock purchases and 0.45 billion in cash dividends; the quarterly dividend was raised 16 percent to 0.50 per share for 2025. Adjusted R&D is guided to 690 to 700 million in 2025, supporting lifecycle innovation and new indications.

Stock-based compensation is modest relative to revenue, and shares outstanding are trending down, signaling net anti-dilution. M&A has been bolt-on and measured. We score capital allocation highly, with a preference to prioritize organic innovation and returns-driven capex.