cvs health dividend yield and shareholder benefits

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CVS Health's dividend yield is attractive to investors, with a history of consistent payouts.

The company has a strong track record of returning value to shareholders through its dividend program.

CVS Health's dividend yield has averaged around 3.5% over the past five years, making it an attractive option for income-seeking investors.

This yield is significantly higher than the S&P 500 average, indicating a potential for long-term growth.

Investors can expect CVS Health to continue paying out a significant portion of its earnings as dividends, providing a relatively stable source of income.

Yield

CVS's dividend yield is a notable aspect of their financial performance. CVS's dividend yield of 5.1% is higher than the bottom 25% of dividend payers in the US market, which stands at 1.4%.

The company's dividend yield is also in the top 25% of dividend payers in the US market, which is a good sign for investors. The top 25% of dividend payers in the US market have a dividend yield of 4.5%.

Credit: youtube.com, CVS health stock - dividend yield at all-time-high. Bargain or value trap?

One way to compare CVS's dividend yield to the market is to look at the industry average. The industry average for the healthcare sector is 1.8%, which is lower than CVS's dividend yield.

Here's a breakdown of CVS's dividend yield compared to the market:

It's worth noting that CVS's dividend yield is also higher than the analyst forecast for the company, which is 5.6% over the next three years.

Investing in CVS Health

Investing in CVS Health can be a smart move, especially if you're looking for a stable dividend payer. CVS Health has a long history of paying consistent dividends, with a dividend yield of 3.4% as of 2022.

The company's strong financials are a major reason for its attractive dividend yield. CVS Health generated $253.9 billion in revenue in 2020, with a net income of $7.5 billion.

Investors can expect a relatively stable dividend payout, with CVS Health increasing its dividend payout for 14 consecutive years. This stability is a key factor in the company's appeal to income-focused investors.

The pharmacy giant's diversified business model, which includes pharmacy services, health insurance, and retail operations, also contributes to its financial strength.

Dividend Details

Credit: youtube.com, Dividend Yield Explained (For Beginners)

CVS's dividend payout ratio is a reasonable 65.6%, which means its dividend payments are covered by earnings.

The company's dividend yield is a notable 5.1%, which is higher than the bottom 25% of dividend payers in the German market, with a yield of 1.6%.

In comparison to the market top 25%, CVS's dividend yield of 5.1% is slightly lower than the 4.8% yield of the top performers.

Here's a quick comparison of CVS's dividend yield to other market segments:

CVS's dividend yield is also expected to increase, with an analyst forecast of 5.6% over the next three years.

Shareholder Yield

Shareholder Yield is a metric that measures the total return to shareholders through dividends, buybacks, and debt paydown.

It's a ratio that compares the cash returned to shareholders over a period of time to the market capitalization of the company.

The graph for CVS Health Corporation shows how each component contributes to the overall shareholder yield, with indicators for dividends, buybacks, and debt paydown.

Investors should consider shareholder yield in conjunction with other financial metrics, such as earnings, revenue, and debt levels, to get a comprehensive understanding of a company's financial position.

This will provide a more complete picture of a company's financial health and potential for future growth.

Cash Payout

Credit: youtube.com, Dividend Yield Explained (For Beginners)

Cash Payout is a crucial aspect of dividend investing, and it's essential to understand how a company's cash payout ratio affects its ability to pay dividends.

CVS's cash payout ratio is a staggering 198.4%, indicating that its dividend payments are not well covered by cash flows. This means that the company may struggle to maintain its dividend payments in the future.

See what others are reading: Payout Ratio vs Dividend Yield

Earnings Distribution to Shareholders

CVS's dividend payments are covered by earnings, thanks to its reasonable payout ratio of 65.6%.

The company's dividend payments are a significant portion of its earnings, but they are still manageable. This is a good sign for investors who are interested in the company's ability to sustain its dividend payments.

CVS's payout ratio is reasonable compared to other companies in the industry. This suggests that the company is able to balance its dividend payments with its overall financial health.

A high payout ratio can be a red flag for investors, but in this case, it's not a cause for concern. CVS's earnings are sufficient to cover its dividend payments.

Credit: youtube.com, Distributions to Shareholders: Dividends and Share Repurchases (FRIAS)

However, it's worth noting that CVS's cash payout ratio is much higher, at 198.4%. This means that the company's dividend payments are not as well covered by its cash flows.

This discrepancy suggests that CVS may be relying on its earnings to cover its dividend payments, rather than its cash flows. This is something that investors should keep an eye on in the future.

Yield vs. Market

When comparing CVS's dividend yield to the market, it's essential to understand where it stands. CVS's dividend yield of 5.06% is higher than the bottom 25% of dividend payers in the US market.

In fact, CVS's dividend yield is higher than 1.43%, which is the average yield of the bottom 25% of dividend payers in the US market. This is a notable difference, indicating that CVS's dividend is more attractive than many other dividend-paying stocks.

CVS's dividend yield is also in the top 25% of dividend payers in the US market, with a yield of 4.49% compared to the top 25% average of 4.5%. This puts CVS in a strong position among its peers.

Credit: youtube.com, What is a Dividend Yield and How to Calculate It

Here's a comparison of CVS's dividend yield to the market in the US and Germany:

In the German market, CVS's dividend yield of 5.06% is higher than the bottom 25% of dividend payers, which averages 1.63%. It's also in the top 25% of dividend payers, with a yield of 4.76% compared to the top 25% average of 4.8%.

Research and Analysis

CVS Health's dividend yield has been steadily increasing over the years, with a current yield of around 4%. This is due in part to the company's efforts to return value to shareholders through dividend payments.

The company's dividend payout ratio, which measures the percentage of earnings paid out as dividends, has been relatively stable at around 50% in recent years. This suggests that CVS Health is committed to maintaining a consistent dividend payment schedule.

As a result, investors have come to rely on CVS Health as a stable source of income through its dividend payments.

History

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CVS Health Corporation has a significant dividend history, with an average payment per share of 9.92% over the past 12 months.

The company's dividend growth is consistent, with a 9.97% average over the past 36 months.

Its dividend history can be affected by various factors, such as profitability, cash flow, and financial stability.

Over the past 60 months, CVS's dividend growth has been 5.87%, indicating a steady but slower pace.

The company's long-term dividend growth is 9.23% over the past 120 months, showing a consistent track record.

Comparing CVS Health to Other Stocks

Comparing CVS Health to Other Stocks is a crucial step in evaluating its performance and potential growth. CVS Health Corporation's dividend yield is 4.21%, which is a significant percentage of the current stock price paid out to shareholders.

The percentile ranks table provides a way to compare CVS Health Corporation's dividend yield relative to its sector, country, and the world. CVS's dividend yield is lower than 21% of companies in its sector.

Credit: youtube.com, CVS Health (CVS) - Quick Stock Analysis

To get a better understanding of CVS Health Corporation's dividend yield, let's take a look at how it compares to its peers. The table below shows the top 10 companies in CVS Health Corporation's sector, sorted by dividend yield.

CVS Health Corporation's dividend yield is not among the top 10 companies in its sector, indicating that its dividend yield is lower than most of its peers.

Looking for Info?

If you're interested in learning more about CVS's dividend history, there are several resources available. You can find CVS's dividend history on websites like Nasdaq, Dividend Investor, and Seeking Alpha.

CVS's dividend yield is 4.21%, which means that investors would receive $4.21 in dividends per year for every $100 invested in the company's stock.

To get a better sense of CVS's dividend performance, you can look at its dividend history over the past 6 years, which shows that it has returned more capital to shareholders than 94.58% of other dividend-paying US stocks.

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If you're looking for ways to reduce price risk in your dividend portfolio, you can consider the dividend stocks that are least correlated with CVS's price, which include WDFC, CELP, BMRC, GHG, and XLNX.

CVS pays dividends on a quarterly basis, and its ex-dividend date is January 23, 2025, which means that buyers purchasing shares on or after that date will not be eligible to receive the next dividend payment.

Curious to learn more? Check out: Goldman Sachs Share Price History

Anne Wiegand

Writer

Anne Wiegand is a seasoned writer with a passion for sharing insightful commentary on the world of finance. With a keen eye for detail and a knack for breaking down complex topics, Anne has established herself as a trusted voice in the industry. Her articles on "Gold Chart" and "Mining Stocks" have been well-received by readers and industry professionals alike, offering a unique perspective on market trends and investment opportunities.

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