Dividend Power Score
A single, comprehensive score designed to measure the true strength of a company’s dividend.
This score combines three essential pillars of dividend quality:
Consistency – Measures how reliable the dividend has been over time, focusing on payment history, stability, and the absence of cuts or suspensions.
Payability – Assesses the company’s financial ability to sustain its dividend, taking into account cash flow, earnings coverage, balance sheet strength, and overall financial health.
Growth – Evaluates the long-term growth of both the dividend and the company’s share price, highlighting businesses that consistently increase payouts while creating shareholder value.
Higher scores identify companies that have historically delivered dependable income alongside sustained dividend growth and long-term capital appreciation.
Company Overview
Centene Corporation is a diversified healthcare enterprise focused primarily on government-sponsored healthcare programs in the United States. The company operates within the managed healthcare and health insurance industries, with a core emphasis on serving Medicaid, Medicare, and Affordable Care Act (ACA) Marketplace populations. Centene’s business model centers on providing health plans and related services to underinsured and low-income individuals through contracts with state and federal governments.
Centene generates the majority of its revenue from premium payments tied to government programs, supplemented by healthcare services and specialty offerings. Its primary customers are state Medicaid agencies, the federal government, and individual consumers enrolled in subsidized health plans. The company’s strategic positioning is based on scale, deep expertise in complex government programs, and a localized operating model through state-based subsidiaries. Founded in 1984, Centene began as a single Medicaid plan in Wisconsin and expanded organically and through acquisitions to become one of the largest managed care organizations in the United States, notably transforming its scale through the acquisition of Health Net, Inc. in 2016.
Business Operations
Centene reports operations through three core business segments: Medicaid, Medicare, and Commercial. The Medicaid segment is the largest revenue contributor and includes managed care plans, long-term services and supports, and behavioral health services delivered under state contracts. The Medicare segment consists primarily of Medicare Advantage and Medicare Prescription Drug Plans, while the Commercial segment is driven largely by ACA Marketplace plans offered under the Ambetter brand.
Operations are primarily domestic, though the company has historically maintained limited international exposure through specialty service lines. Centene controls a broad portfolio of health plan subsidiaries, care management platforms, pharmacy benefit management capabilities, and data analytics assets. Key subsidiaries include Centene Management Company, LLC, Health Net, and WellCare Health Plans, the latter acquired in 2020 and fully integrated into Centene’s operations.
Strategic Position & Investments
Centene’s strategy emphasizes disciplined growth in government-sponsored healthcare programs, operational efficiency, and margin improvement following a period of rapid expansion. Growth initiatives focus on winning and renewing state Medicaid contracts, expanding Medicare Advantage membership, and selectively participating in ACA Marketplace geographies where risk-adjusted returns meet internal targets.
Major acquisitions have played a central role in Centene’s evolution, with Health Net, Inc. and WellCare Health Plans representing the most significant transactions, materially expanding its Medicaid and Medicare footprint. The company has also invested in healthcare technology, value-based care enablement, and data analytics to improve care coordination and cost management. While Centene has reduced exposure to non-core international assets, it continues to evaluate investments aligned with government-sponsored healthcare delivery and population health management.
Geographic Footprint
Centene is headquartered in St. Louis, Missouri, and operates health plans across a majority of U.S. states, making it one of the most geographically diverse managed care organizations in the country. Its presence is particularly strong in large Medicaid markets such as California, Florida, Texas, New York, and Ohio, where it serves millions of members through state-specific subsidiaries.
The company’s operations are overwhelmingly concentrated in North America, with limited international activities following strategic exits from several overseas markets. Centene’s geographic diversification within the United States reduces reliance on any single state, though performance remains sensitive to regulatory and policy changes at both state and federal levels.
Leadership & Governance
Centene was founded by Elizabeth “Betty” Brinn, who established the company’s original Medicaid-focused mission. The current leadership team emphasizes regulatory compliance, disciplined capital allocation, and long-term sustainability in government healthcare programs. Governance is shaped by extensive experience in managed care, public policy, and healthcare services.
Key executives include:
- Sarah M. London – Chief Executive Officer
- Drew L. Asher – Chief Financial Officer
- Kenneth J. Fasola – President
- Andrew L. Asher – Executive Vice President, Strategy and Development
- Mark R. Hootnick – Executive Vice President, Chief Risk Officer
Leadership has articulated a strategic vision centered on improving health outcomes for complex populations while restoring investor confidence through operational execution and financial discipline following prior earnings volatility.