INDIANAPOLIS (AP) — WellPoint Inc. said it plans to raise the quarterly dividend it pays shareholders by 30 percent, an announcement that comes about week after the health insurer's stock started slipping after it named a new CEO.
The Indianapolis company said Thursday that it will pay a dividend of 37.5 cents per share in the first quarter, up from its fourth-quarter payout of 28.7 cents per share. The new dividend is payable March 25 to shareholders of record at the close of business on March 8.
In a brief statement, WellPoint did not delve into why its board approved the increase. Companies often look to spend cash they pile up from strong performances on shareholder dividends or stock buybacks.
WellPoint and other big insurers like UnitedHealth Group Inc., Aetna Inc. and Humana Inc. started beefing up their quarterly dividends a few years ago. The steady cash flow from dividends can make a company more attractive to investors.
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