CVS Health Corporation

CVS
Healthcare
$104.47
2.55%Overvalued

CVS Health Corporation (CVS) is a Healthcare company that currently yields 2.55% — historically overvalued based on 10 years of dividend yield history. The Weiss valuation model places the undervaluation threshold at $58.56 and the overvaluation threshold at $104.72. 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. $104.72

Distance to undervalued

Entry price is stretched

Needs 43.9% downside to reach the Weiss buy zone

Undervaluation starts near $58.56, where the annual dividend would imply roughly 4.54% yield. That is 2.00% above today's yield.

Buy-zone price

$58.56

Target yield

4.54%

Research checklist

What to clear before buying the yield

Updated Jul 9, 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

2026-07-082026-07-09

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

Why Now?

CVS Health Corporation is trading near its historical overvaluation band.

Current yield 2.5% vs historical max 4.2% (60% 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 the brake here: the yield is compressed versus its own history.

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

$270

Year 10 Income

$612

Yield on Cost

6.39%

Total Income

$4,155

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

Track actual vs. projected

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More research

Full price history & technical analysis

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Fundamentals, valuation & analyst ratings

FinViz ↗

Moat rating & analyst fair value

Morningstar ↗

Track dividends received & tax reports

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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$104.47
Annual Dividend$2.66
Current Yield2.55%
Yield — Max (10Y)4.24%
Yield — Min (10Y)1.80%
Undervalued Below$58.56
Overvalued Above$104.72
Payout Ratio116.67%
CAGR Dividend 5Y5.9%
CAGR Dividend 10Y6.6%
Years No Cut14y

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14
consecutive years of dividend growth