Aetna Doubles Dividend, Boosts Stock Buyback Plans
18 February 2017 - 7:25AM
Dow Jones News
By Maria Armental
Aetna Inc. is doubling its quarterly dividend and adding another
$4 billion to its stock-buyback authorization, days after it walked
away from its $34 billion merger deal with Humana Inc. over
government antitrust concerns.
A federal judge had ruled that merger would threaten
competition, harming seniors who buy private Medicare coverage as
well as some people who buy health plans through an Affordable Care
Act insurance exchange.
Now without the deal's expenses on the horizon, Aetna is able to
use its liquidity to buy back more stock and boost payouts to
shareholders. The increased buyback authorization means Aetna has
about $5.1 billion available to repurchase stock, which includes
approximately $1.1 billion left from previous authorizations in
2014.
The first payout under the raised 50-cent-a-share dividend will
be on April 28 to shareholders of record as of the close of
business on April 13.
Shares of the Connecticut-based insurer, up 19% over the past 12
months, fell 2.9% to $125.76 in recent trading Friday.
Write to Maria Armental at maria.armental@wsj.com
(END) Dow Jones Newswires
February 17, 2017 15:10 ET (20:10 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
Humana (NYSE:HUM)
Historical Stock Chart
From Jun 2024 to Jul 2024
Humana (NYSE:HUM)
Historical Stock Chart
From Jul 2023 to Jul 2024