WOONSOCKET, R.I. - CVS Health (NYSE:CVS) announced today that its board of directors has approved a quarterly dividend payment to its shareholders. The dividend, set at sixty-six and one-half cents ($0.665) per share, will be distributed on May 1, 2025, to stockholders of record as of April 22, 2025. This continues the company’s impressive 55-year streak of maintaining dividend payments, with the current annual yield standing at 3.92%.
CVS Health is known for being a prominent player in the healthcare sector, providing a variety of services aimed at enhancing the health of communities across the United States. With annual revenue of $370.66 billion and a workforce of over 300,000, including upwards of 40,000 healthcare professionals such as physicians, pharmacists, nurses, and nurse practitioners, the company emphasizes its commitment to accessible and affordable healthcare services. According to InvestingPro, the company has shown strong momentum with a 53.2% return year-to-date.
The corporation leverages both physical locations and digital platforms to reach a broad audience, focusing on comprehensive care, including the management of chronic conditions, medication adherence, and convenient access to health and wellness services. CVS Health positions itself as a vital partner in the healthcare journey of individuals, striving to deliver care with efficiency and compassion.
This dividend announcement underscores CVS Health’s ongoing efforts to provide value to its shareholders while continuing its mission to improve the healthcare experience for consumers. The information regarding the dividend is based on a press release statement from CVS Health Corporation.
In other recent news, CVS Health reported fourth-quarter earnings for 2024 that surpassed consensus expectations, with adjusted earnings per share (EPS) reaching $1.19, which is 29% higher than anticipated. This performance led Bernstein SocGen Group to raise its price target for CVS Health to $71 from $52, citing a stronger outlook for Aetna, a part of CVS Health, as a key factor. Similarly, Mizuho Securities increased its price target for CVS Health to $70 from $58, maintaining an Outperform rating based on the company’s financial strength and potential to generate profits.
In a strategic development, CVS Health’s Medicare Shared Savings Program business was acquired by Wellvana, a move that gives CVS Health a minority investment in Wellvana. This acquisition enhances Wellvana’s capabilities in value-based care, expanding its network across 40 states. Additionally, CVS Pharmacy has introduced a new 3-in-1 test for Influenza A, Influenza B, and COVID-19 at approximately 1,600 locations, part of an effort to expand flu testing and treatment services.
Meanwhile, the healthcare sector faced a downturn after news of a Department of Justice investigation into UnitedHealth Group’s Medicare billing practices, raising concerns about potential implications for other companies, including CVS Health. Despite this, analysts from Bernstein and Mizuho have shown confidence in CVS Health’s financial performance and future prospects. These recent developments highlight the dynamic landscape in which CVS Health operates, balancing strategic expansions with industry-wide challenges.
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