This Dividend Stock Had a Great Quarter

Dividend stock Aetna  (NYSE: AET  ) had a blowout first quarter, with strong operating revenue up 47% to almost $14 billion. That top-line growth helped push operating earnings per share to $1.98 from $1.56 in last year's first quarter. En route to shattering analyst expectations, Aetna reported new members from a variety of sources -- 60,000 from Medicaid, 130,000 from Medicare Advantage, 130,000 from private exchanges, and 230,000 from the public exchanges.

Aetna did a better job ensuring that revenue from those members flowed through to the bottom line as well, with a medical benefit ratio (the proportion of premium revenue paid out in medical costs) improving to 80%, with the government medical benefit ratio improving three percentage points to 85%.

In this video from Friday's Market Checkup, Motley Fool health care analysts Michael Douglass and David Williamson cover the other major takeaways from the earnings report.

Aetna pays a pretty small dividend. Looking for bigger income stocks? Here are some top dividend stocks for the next decade
The smartest investors know that dividend stocks simply crush their non-dividend paying counterparts over the long term. That's beyond dispute. They also know that a well-constructed dividend portfolio creates wealth steadily, while still allowing you to sleep like a baby. Knowing how valuable such a portfolio might be, our top analysts put together a report on a group of high-yielding stocks that should be in any income investor's portfolio. To see our free report on these stocks, just click here now.

 


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