CVS Health is hiking its dividend and tightening its 2016 earnings forecasts a couple months after underwhelming investors with its initial outlook.
The nation's second-largest drugstore chain says it now expects earnings for next year to range between $5.73 and $5.88 per share. That compares to an initial guidance range it laid out in October that started at $5.68 per share.
FactSet says analysts currently expect earnings of $5.82 per share.
CVS Health Corp. also says it will now pay shareholders starting in February a quarterly cash dividend of 42.5 cents per share, up from 35 cents. That adds up to an annual dividend of $1.70 per share.
The Woonsocket, Rhode Island, company also runs one nation's largest pharmacy benefits management businesses.
Its shares rose 2 percent in premarket trading Wednesday.