The Dividend Daily

Shares of Cigna (CI) are up slightly as the company expects flat to single-digit percentage earnings growth in 2010.

The company made $329 million, or $1.19 per share, in the three months that ended Sept. 30, compared to $171 million, or 62 cents per share, in the same period a year ago. Overall, revenue fell 8 percent to $4.5 billion.

The company’s enrollment figures fell 7 percent to 11.1 million from the third quarter of 2008.

Looking ahead, the company expects revenue of $1 billion to $1.1 billion and earnings excluding one-time items of $3.80 to $4.00 a share. The consensus analyst expectations if for EPS of $4.13.

The Bottom Line
We have avoided shares of CIGNA since our early June coverage began last year, when the stock was trading at $41.55. The company has a .13% dividend yield, based on last night’s closing stock price of $29.78. The stock has technical support in the $24-$25 price area. If the shares can continue their recent momentum, we see overhead resistance around the $30-$35 price levels. We would remain on the sidelines for now.

Cigna is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.