CVS Health Corporation Plans Quarterly Dividend of $0.67 (NYSE:CVS)

Key Points

• CVS Health declared a quarterly dividend of $0.665 per share, payable on August 3 to shareholders of record on July 23, with an annualized yield of about 2.6%.
• The company has increased its dividend for four consecutive years, and its payout ratio of 37.7% suggests the dividend is well covered by earnings.
• CVS also reported strong recent results, including $2.57 EPS and $100.43 billion in revenue for the quarter, both above analyst expectations, while analysts currently maintain a Moderate Buy consensus.

CVS Health Corporation (NYSE:CVS - Get Free Report) declared a quarterly dividend on Friday, July 10th. Shareholders of record on Thursday, July 23rd will be given a dividend of 0.665 per share by the pharmacy operator on Monday, August 3rd. This represents a c) annualized dividend and a yield of 2.6%. The ex-dividend date is Thursday, July 23rd.

CVS Health has raised its dividend payment by an average of 0.1%annually over the last three years and has raised its dividend annually for the last 4 consecutive years. CVS Health has a dividend payout ratio of 37.7% indicating that its dividend is sufficiently covered by earnings. Equities research analysts expect CVS Health to earn $8.37 per share next year, which means the company should continue to be able to cover its $2.66 annual dividend with an expected future payout ratio of 31.8%.

CVS Health Stock Performance

Shares of CVS stock traded up $1.34 during trading hours on Friday, reaching $104.15. 9,149,508 shares of the company's stock were exchanged, compared to its average volume of 8,480,558. The company has a debt-to-equity ratio of 0.78, a current ratio of 0.87 and a quick ratio of 0.66. CVS Health has a 1 year low of $58.50 and a 1 year high of $106.15. The company has a market cap of $132.88 billion, a P/E ratio of 45.88, a price-to-earnings-growth ratio of 1.02 and a beta of 0.61. The company's 50 day moving average is $96.50 and its two-hundred day moving average is $84.03.

CVS Health (NYSE:CVS - Get Free Report) last announced its quarterly earnings data on Wednesday, May 6th. The pharmacy operator reported $2.57 earnings per share for the quarter, topping analysts' consensus estimates of $2.21 by $0.36. CVS Health had a return on equity of 11.88% and a net margin of 0.72%.The firm had revenue of $100.43 billion for the quarter, compared to analyst estimates of $94.99 billion. During the same quarter in the prior year, the company posted $2.25 earnings per share. CVS Health's quarterly revenue was up 6.2% on a year-over-year basis. CVS Health has set its FY 2026 guidance at 7.300-7.500 EPS. Equities research analysts anticipate that CVS Health will post 7.44 EPS for the current fiscal year.

Wall Street Analysts Forecast Growth

CVS has been the topic of several recent analyst reports. TD Cowen upped their target price on shares of CVS Health from $105.00 to $110.00 and gave the stock a "buy" rating in a research report on Monday, May 11th. Weiss Ratings reissued a "hold (c)" rating on shares of CVS Health in a research note on Friday, May 8th. Wells Fargo & Company raised their price objective on CVS Health from $102.00 to $103.00 and gave the company an "overweight" rating in a research note on Friday, May 8th. JPMorgan Chase & Co. boosted their target price on CVS Health from $101.00 to $111.00 and gave the stock an "overweight" rating in a research report on Tuesday, May 12th. Finally, Royal Bank Of Canada raised their price target on CVS Health from $107.00 to $113.00 and gave the company an "outperform" rating in a research report on Thursday. Twenty-one analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $102.84.

CVS Health Company Profile

CVS Health Corporation is a diversified healthcare company that operates a large network of retail pharmacies, pharmacy benefit management services and health care solutions. Headquartered in Woonsocket, Rhode Island, the company traces its roots to the early 1960s and has grown into an integrated provider of prescription drugs, over‑the‑counter products, clinical services and health insurance offerings. Its operating model combines retail pharmacy locations and in‑store clinics with broader pharmacy and health plan capabilities.

Key business activities include CVS Pharmacy retail operations, MinuteClinic walk‑in medical clinics and HealthHUB locations that offer expanded clinical services.

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