Aetna Shares Surge as Q4 Results Beat View, Dividend Boosted (AET)

Filed in dividend, Ford, Gold Investing, o, revenue, shares by on February 4, 2011 0 Comments

Health insurance provider Aetna Inc. ( AET ) on Friday said its fourth quarter profit jumped 30% from last year, and the company significantly raised its dividend payout, sending its shares soaring in premarket trading. The Hartford, CT-based company reported fourth quarter net income of $215.6 million, or 53 cents per share, compared with $165.9 million, or 38 cents per share, in the year-ago period. Excluding one-time items, adjusted operating profit was 63 cents per share. Revenue fell 2% from last year to $8.54 billion. On average, Wall Street analysts expected a slightly smaller profit of 62 cents per share, on lower revenue of $8.32 billion. The company also announced a new 15 cent per-share quarterly dividend payout, up significantly from its prior payout of just 4 cents annually. The new dividend will be paid on Apr. 28 to shareholders of record as of Apr. 14. Aetna shares rose $4.86, or +15%, in premarket trading Friday. The Bottom Line Shares of Aetna ( AET ) will now have a 1.80% dividend yield, based on the new higher dividend payout and last night’s closing stock price of $33.27. The stock has technical support in the $30 price area. If the shares can firm up, we see overhead resistance around the $36-$38 price levels. Aetna Inc. ( AET ) is not recommended at this time, holding a DARS™ Rating of 3.4 out of 5 stars. Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

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Aetna Shares Surge as Q4 Results Beat View, Dividend Boosted (AET)

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