CVS Caremark Increases Quarterly Dividend by 43%

CVS Caremark Corporation 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.