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CVS Health Boosts FY21 Outlook; Raises Dividend 10% - Quick Facts

Ahead of its 2021 Investor Day later on Thursday, CVS Health (CVS) updated its guidance for the full-year 2021 and initiated full-year 2022 outlook. The company also raised its dividend by 10 percent and authorized a $10 billion share repurchase program.

For fiscal 2021, the company now projects earnings in a range of $5.50 to $5.61 per share and adjusted earnings of at least $8.00 per share on total revenues of at least $290.3 billion.

Previously, the company expected earnings in the range of $5.46 to $5.67 per share, and adjusted earnings in the range of $7.90 to $8.00 per share on total revenues between $286.5 billion and $290.3 billion.

On average, analysts polled by Thomson Reuters expect the company to report earnings of $7.98 per share on revenues of $288.93 billion for the year. Analysts' estimates typically exclude special items.

Looking ahead to fiscal 2022, the company now anticipates earnings in a range of $7.04 to $7.24 per share and adjusted earnings in a range of $8.10 to $8.30 per share on total revenues between $304.0 billion and $309.0 billion. The Street is looking for earnings of $8.24 per share on revenues of $301.66 billion for the year.

As part of its long-term growth trajectory, CVS Health is also targeting a return to low double-digit adjusted earnings per share growth in 2024 and beyond.

In addition, the company will increase its yearly dividend by 10% to $2.20, effective with the next dividend distribution on February 1, 2022. The company also has authorized a $10 billion share repurchase program, which will be used to at least offset share count dilution in 2022. This is the first time CVS Health has increased its dividend or repurchased stock since 2017.

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