Health insurer Aetna Inc. is increasing its quarterly dividend by 17 percent to 17.5 cents, saying on Friday that it was confident in its cash flow and capital levels.
The Hartford, Conn., company began paying a 15-cent quarterly dividend in April, a big increase from the annual 4-cent dividend it had paid for the past five years.
Aetna said in October when it reported third-quarter earnings that lower-than-expected use of health care is helping its business. The company, the country's third-largest commercial health insurer based on enrollment and revenue, lifted its 2011 earnings forecast at that time.
Aetna said its next dividend is payable Jan. 27 to shareholders of record on Jan. 13.