CVS Caremark Provides Strong Growth Outlook for 2013 and Beyond, Announces 38%Dividend Increase and Outlines Strategic Growth Framework
From the press release
The board’s decision to increase the dividend by 38% reflects our strong performance and outlook as well as our very significant cash generation capabilities,”
Today’s increase allows us to meet our 25% dividend payout ratio target two years early and marks our tenth consecutive year of dividend increases. We remain committed to using our free cash flow to enhance total returns for our shareholders through a combination of high-return investments, dividend increases and value-enhancing share repurchases.”
This increase translates into an annual rate of 90 cents per share, up 25 cents per share from the previous annual rate of 65 cents.
According to Ameritrade today… CVS has 1.2 BILLION shares outstanding… meaning that CVS is paying out a EXTRA 400 MILLION dollars a year to its stockholders. a 38% INCREASE.
I am sure that those of you who work for CVS have received generous raises and/or extra help to deal with the increased Rx volume and flu shots you have to give. You should be proud that you have helped CVS to GENERATE SIGNIFICANT CASH FLOW.. and allowing CVS to pay their stock holders nearly ONE BILLION dollars a year in dividends.
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