WOONSOCKET, R.I. CVS Caremark announced on Tuesday that its board of directors has approved an increase in its quarterly dividend of approximately 15%, to 8.75 cents per share on the common stock.
The increase is payable Feb. 2, 2010, to holders of record on Jan. 22, 2010, and translates into an annual rate of 35 cents per share, up 4.5 cents per share from the previous rate of 30.5 cents.
"An annual review of our dividend is an essential component of our company's capital allocation strategy, and I'm pleased to note that this marks our seventh consecutive year of dividend increases," stated Dave Denton, EVP and CFO. "This considerable increase reflects our continued strong financial performance, our optimism with respect to future growth and our significant cash generation capabilities. It also reflects our ongoing commitment to enhancing total returns for our shareholders."