CVS Health Corporation

CVS
Healthcare
$93.26
2.85%Fair Value

CVS Health Corporation (CVS) is a Healthcare company that currently yields 2.85% — trading near fair value based on 10 years of dividend yield history. The Weiss valuation model places the undervaluation threshold at $58.56 and the overvaluation threshold at $106.98. CVS Health Corporation holds a quality score of 50/100 (Average), reflecting 14 consecutive years of dividend growth with a 117% payout ratio. The 5-year dividend CAGR stands at 5.9%.

CVS Dividend Yield History — Weiss Valuation

Underval. $58.56Overval. $106.98

Distance to undervalued

Waiting for a better entry

Needs about 37.2% downside to reach the Weiss buy zone

Undervaluation starts near $58.56, where the annual dividend would imply roughly 4.54% yield. That is 1.69% above today's yield.

Buy-zone price

$58.56

Target yield

4.54%

Research checklist

What to clear before buying the yield

Updated May 25, 2026

Dividend durability

14Y

Long dividend history supports a deeper look.

Earnings payout

117%

Coverage deserves a closer look in filings.

Cash payout

65%

Free cash flow coverage supports the payment.

Dividend growth

5.9%

Recent growth adds income compounding potential.

What changed

What changed since the last update

2026-05-232026-05-25

No major change in signal, yield, price, quality, or payout since the last update.

Why Now?

CVS Health Corporation is trading at a fair valuation relative to its dividend history.

Current yield 2.9% vs historical max 4.3% (67% of maximum).

14 consecutive years without a dividend cut.

Elevated payout ratio of 117%.

What matters now

Read the signal before the headline yield

Valuation is neutral here: quality has to do more of the work than entry price.

The 50/100 quality score says the headline yield needs extra skepticism.

The earnings payout ratio is above 100%, so coverage is the first risk to unpack.

CVS Dividend Income Projection — DRIP Compounder

Dividend Compounder (DRIP)

$

Year 1 Income

$302

Year 10 Income

$710

Yield on Cost

7.46%

Total Income

$4,746

Assumes dividends reinvested at current price. Simplified model — for illustrative purposes only.

More research

Full price history & technical analysis

TradingView ↗

Fundamentals, valuation & analyst ratings

FinViz ↗

Moat rating & analyst fair value

Morningstar ↗

CVS Dividend Quality Score

Quality Score

50/ 100

Average

Payout Ratio0/25
Dividend Streak20/25
Growth (CAGR 5Y)15/20
Yield vs History5/15
FCF Coverage10/15

Key Metrics

Current Price$93.26
Annual Dividend$2.66
Current Yield2.85%
Yield — Max (10Y)4.25%
Yield — Min (10Y)1.80%
Undervalued Below$58.56
Overvalued Above$106.98
Payout Ratio116.67%
CAGR Dividend 5Y5.9%
CAGR Dividend 10Y6.6%
Years No Cut14y

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14
consecutive years of dividend growth