Humana Inc., a healthcare provider, announced Thursday that its board of directors had approved a 12.4% increase in its quarterly dividend from 78.75 cents to 88.50 cents per share. The dividend will be payable on April 28 to shareholders of record as of March 31.
The news of the dividend increase has been well-received by investors, as Humana’s stock has gained 16% in the last 12 months, outperforming the S&P 500 which has fallen 7%.
Humana’s dividend increase is the latest in a series of positive developments for the company. In January, Humana announced that it would be expanding its Medicare Advantage offerings in 2021, which is expected to result in a significant increase in revenue for the company. The company also recently announced that it would be investing $800 million in its digital health offerings over the next five years, which will help to further strengthen its position in the healthcare industry.
Humana’s dividend increase is a sign of the company’s commitment to providing value to its shareholders. The company has been steadily increasing its dividend for the past several years, and the latest increase is a clear indication that the company is confident in its long-term prospects.
Humana’s dividend increase is also a sign of the company’s financial strength. The company has been able to consistently generate strong cash flows from its operations, which has allowed it to pay a steady and increasing dividend. The company’s strong balance sheet also provides it with the flexibility to continue to invest in its business and pursue growth opportunities.
Humana’s dividend increase is a clear sign that the company is well-positioned to take advantage of the opportunities in the healthcare industry. The company’s strong financial position, combined with its commitment to providing value to its shareholders, make it an attractive investment opportunity. With its strong growth prospects and increasing dividend, Humana is an attractive option for investors looking for a reliable income stream.