Oh, those long lines at CVS
So I have a love/hate relationship with CVS; why do I go back? For one thing, it's super-convenient; mine's a two short minutes from home. And another thing, every time I've tried to fill a prescription at my neighborhood Safeway
CVS reported earnings higher by 15%, at $187.8 million or 46 cents per share, compared to $164.4 million, or 40 cents a share, in the year-ago quarter. These results lined up with Wall Street's estimates. Overall sales came in higher by 8.5% at $6.38 billion.
The magic number appears to be 15, as the company also said it will up its quarterly dividend by that percentage, which will add up to 26.5 cents per share per year. (And, of course, if dividend-yielding stocks sound like good medicine to you, you might consider a monthly dose of The Motley Fool Income Investor newsletter.)
The good earnings showing shouldn't come as a shock. Jeff Hwang highlighted rising sales at CVS in early October, and Dave Marino-Nachison commented last month on the heated rivalry between CVS and drugstore giant Walgreen
CVS shares hit a new 52-week high of $36.21 in Wednesday's trading, though they ended the day at $35.93. Whatever CVS is doing, it appears to be doing it right, and customers are lining up. And, I might add, those lines seem to be moving more quickly these days.
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