CVS Health was purchased by Bristol Gate’s US Equity Fund at inception, in May 2009. It has been held in the portfolio ever since. The company has undergone substantial expansion and is now one of the nation’s largest pharmacy benefits managers as well as an operator of a national retail store chain.

The table below summarizes the company’s financial results and growth rates since 2010. Asset growth has been 4% during this period and debt has increased at a compound rate of 7%. Strong growth in cash flow from operations has been deployed to acquire and reinvest, to reduce the share count and to grow the dividend at an exceptional rate during this period. In 2015, the dividend paid was $1.40, an increase of 27% over 2014. The 2016 dividend has been increased a further 21%. We believe the company will have the resources to meet our dividend growth requirements again in 2017.