CVS/Caremark boosts dividend to 6 cents/share

WOONSOCKET – The board of directors of CVS/Caremark Corp. has approved a 23-percent increase in the company’s quarterly dividend, the company announced today. The increase is the second this year.

A dividend of 6 cents per share of the company’s common stock will be payable May 4 to shareholders of record April 24.

“Our dividend was increased in January for the fourth consecutive year,” Dave Rickard, the company’s executive vice president, chief financial officer and chief administration officer, said in a statement. “However, our recent merger with Caremark, and our expectations for strong financial performance of the combined company, led to the Board’s decision to increase the dividend to a level commensurate with Caremark’s former dividend.”

The company yesterday announced the commencement of its planned tender offer for up to 150 million shares – about 10 percent of common stock outstanding – at a set price of $35 per chare. The buyback began yesterday and will end at midnight April 24, unless extended.

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CVS/Caremark said it has retained Lehman Bros. Inc. and Morgan Stanley & Co. Inc. as its dealer-managers for the buyback, and Morrow & Co. Inc. as its information agent. Questions about the offer may be addressed to Morrow & Co. at (800) 245-1502).

CVS/Caremark Corp. (NYSE: CVS) operates 6,200 CVS/pharmacy stores; the CVS.com online pharmacy, the pharmacy benefit management, mail order and specialty pharmacy division, Caremark Pharmacy Services; and a retail-based health care subsidiary, MinuteClinic. Additional information is available at investor.cvs.com.

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