Why CVS Health Shares Are Rising Today

CVS Health Corp CVS is trading higher Thursday after the company updated its guidance and increased its dividend.

CVS Health said that advancement of health services and primary care capabilities will augment performance in foundational businesses while creating new opportunities in high-growth markets.

As a result, CVS Health updated its 2021 adjusted earnings guidance to "at least $8" per share versus the estimate of $7.98 per share. The company also raised its 2021 revenue guidance to "at least $290.3 billion," up from a prior range of $286.5 billion to $290.3 billion.

CVS Health said it expects 2022 adjusted earnings guidance to be in a range of $8.10 to $8.30 per share versus the estimate of $8.24 per share. The company expects 2022 revenue to be in a range of $304 billion to $309 billion.

In addition, CVS Health is set to increase its yearly dividend by 10%, (from $2.00 to $2.20), effective with the next dividend distribution in February.

"By leaning into our high-growth foundational businesses and expanding our reach in areas like health services and primary care, we have an opportunity to shift care to be more centered around the consumer while capturing a meaningfully greater portion of health care spend,"  said Karen Lynch, president and CEO of CVS Health.

See Also: Where CVS Health Stands With Analysts

CVS Price Action: CVS Health has traded as low as $67.06 over a 52-week period. It's making new 52-week highs Thursday.

The stock was up 4.11% at $96.93 at time of publication.

Photo: Mike Mozart from Flickr.