WOONSOCKET, R.I., Jan. 11, 2011 /PRNewswire via COMTEX/ -- CVS Caremark Corporation (NYSE: CVS) today announced that its Board of Directors has approved an increase in its quarterly dividend of approximately 43%, to $0.125 (12.5 cents) per share on the Common Stock of the Corporation, payable February 2, 2011 to holders of record on January 21, 2011. This increase translates into an annual rate of 50 cents per share, up 15 cents per share from the previous annual rate of 35 cents. At its Analyst Day in October of last year, the Company announced that it set a targeted dividend payout ratio of approximately 25% to 30% by 2015, which implied a compounded dividend growth rate of nearly 25% per year.
"The Board's decision to increase the dividend by 43% demonstrates our commitment to achieving our target," stated Dave Denton, Executive Vice President and Chief Financial Officer. "This marks our eighth consecutive year of dividend increases, and this substantial increase reflects our solid financial performance, our optimism with respect to future growth and our very significant cash generation capabilities. 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."
About CVS Caremark
CVS Caremark is the largest pharmacy health care provider in the United States. Through our integrated offerings across the entire spectrum of pharmacy care, we are uniquely positioned to provide greater access, to engage plan members in behaviors that improve their health, and to lower overall health care costs for health plans, plan sponsors and their members. CVS Caremark is a market leader in mail order pharmacy, retail pharmacy, specialty pharmacy, and retail clinics, and is a leading provider of Medicare Part D Prescription Drug Plans. As one of the country's largest pharmacy benefits managers (PBMs), we provide access to a network of more than 64,000 pharmacies, including approximately 7,100 CVS/pharmacy(R) stores that provide unparalleled service and capabilities. Our clinical expertise includes one of the industry's most comprehensive disease management programs. General information about CVS Caremark is available through the Company's Web site at cvshealth.com.
This press release contains certain forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially. For these statements, the Company claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. The Company strongly recommends that you become familiar with the specific risks and uncertainties outlined under the Risk Factors section in our Annual Report on Form 10-K for the year ended December 31, 2009 and under the section entitled "Cautionary Statement Concerning Forward-Looking Statements" in our most recently filed Quarterly Report on Form 10-Q.
SOURCE CVS Caremark Corporation