NEW YORK (Reuters) - Health insurer Aetna Inc forecast 2011 profit well ahead of Wall Street's target on Friday and dramatically increased its dividend payout.
The No. 3 U.S. health insurer said fourth-quarter profit rose 30 percent to $215.6 million, or 53 cents per share, from $165.9 million, or 38 cents per share, a year earlier.
Excluding items, earnings of 63 cents per share topped analysts' estimates by 1 cent, according to Thomson Reuters I/B/E/S.
Aetna forecast 2011 operating earnings, excluding items, at $3.70 to $3.80 per share. Analysts were looking for $3.27.
Aetna said it had increased the cash dividend to 15 cents per share, to be paid on a quarterly basis. The company's previous payout had been a 4-cent annual payout.
(Reporting by Lewis Krauskopf; Editing by Lisa Von Ahn)
