Thursday, March 29, 2007

CVS/Caremark Announces 23.1% Dividend Increase

Today, the new CVS/Caremark (CVS) announced a 23.1% increase in the company's second quarter dividend. The new quarterly dividend will equal 6 cents per share versus 4.875 cents per share in the first quarter. CVS raised the quarterly dividend in January from 3.875 cents per share. As a result, on a YOY basis (2Q to 2Q) the dividend increase is 54.8%.

Additionally, the company commenced the previously announced tender offer to purchase up to 150,000,000 shares, or about 10%, of its outstanding common stock at a price of $35.00 per share. The offer to purchase shares, which is not conditioned upon any minimum number of shares being tendered, commenced today and will expire at 12:00 midnight, New York City time on April 24, 2007, unless extended.

(click on table/graph for larger image)

CVS/Caremark dividend analysis table
CVS/Caremark stock chart

No comments :