CVS Health Corporation

CVS
Healthcare
$87.92
3.03%Fair Value

CVS Health Corporation (CVS) is a Healthcare company that currently yields 3.03% — 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 $103.41. CVS Health Corporation holds a quality score of 65/100 (Good), reflecting 14 consecutive years of dividend growth with a 70% payout ratio. The 5-year dividend CAGR stands at 5.9%.

CVS Dividend Yield History — Weiss Valuation

Underval. $58.56Overval. $103.41

Distance to undervalued

Waiting for a better entry

Needs about 33.4% downside to reach the Weiss buy zone

Undervaluation starts near $58.56, where the annual dividend would imply roughly 4.54% yield. That is 1.52% above today's yield.

Buy-zone price

$58.56

Target yield

4.54%

Research checklist

What to clear before buying the yield

Updated Oct 7, 2026

Dividend durability

14Y

Long dividend history supports a deeper look.

Earnings payout

70%

Earnings coverage leaves room for noise.

Cash payout

42%

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

2026-10-06 → 2026-10-07

Price

+1.5%

$86.66 → $87.92

Price rose 1.5% since the prior snapshot.

Why Now?

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

Current yield 3.0% vs historical max 4.2% (71% of maximum).

14 consecutive years without a dividend cut.

Reasonable payout ratio of 70%.

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 65/100 quality score calls for selective follow-up, not autopilot.

Start by checking whether payout coverage and business durability still support the dividend.

CVS Dividend Income Projection — DRIP Compounder

Dividend Compounder (DRIP)

$

Year 1 Income

$320

Year 10 Income

$769

Yield on Cost

8.1%

Total Income

$5,091

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

Track actual vs. projected

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Dividend income log · Yield on cost · DRIP cost basis · Tax reports

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More research

Full price history & technical analysis

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Fundamentals, valuation & analyst ratings

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Moat rating & analyst fair value

Morningstar ↗

Track dividends received & tax reports

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CVS Dividend Quality Score

Quality Score

65/ 100

Good

Payout Ratio5/25
Dividend Streak20/25
Growth (CAGR 5Y)15/20
Yield vs History10/15
FCF Coverage15/15

Key Metrics

Current Price$87.92
Annual Dividend$2.66
Current Yield3.03%
Yield — Max (10Y)4.24%
Yield — Min (10Y)1.80%
Undervalued Below$58.56
Overvalued Above$103.41
Payout Ratio70.00%
CAGR Dividend 5Y5.9%
CAGR Dividend 10Y6.6%
Years No Cut14y

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14
consecutive years of dividend growth