Analysis – CVS Health Corp. Increases Dividend by 21%

CVS

CVS Health Corporation announced a regular quarterly dividend of $0.425, a 21 percent increase from the prior rate of $0.35 per share. The dividend will be paid at the new higher rate on February 2, 2016, to shareholders of record at close of business on January 22, 2016. CVS Health Corporation is a member of the Top 100 dividend growth candidates.

Date Quarterly Dividend
1/22/2016 0.425
10/20/2015 0.35
7/21/2015 0.35
4/22/2015 0.35
1/20/2015 0.35
10/21/2014 0.275
7/17/2014 0.275
4/17/2014 0.275
1/21/2014 0.275
10/17/2013 0.225
7/18/2013 0.225
4/19/2013 0.225
1/22/2013 0.225
10/18/2012 0.163
7/19/2012 0.163
4/19/2012 0.163
1/19/2012 0.163
10/19/2011 0.125
7/20/2011 0.125
4/19/2011 0.125
1/19/2011 0.125
10/20/2010 0.088
7/20/2010 0.088
4/21/2010 0.088
1/20/2010 0.088

Analysis of Valuation of CVS Health (Symbol CVS).

CVS Health is trading above its average price/sale (P/S) range.  CVS Health is trading at the top of its average historical dividend yield. 

Price 12/17/15 % Yield 5 Year Div. Growth Rate SPS   2015 P/S Ratio 10 yr P/S Low 10 yr P/S  High 5 yr max Yield % 5 yr lowest Yield %
$94.71 1.51% 18% 139.10 0.73 0.30 0.80 1.52% 0.99%

CVS2

Explanation:  Dividend growth stocks may be valued upon historical relative price/sales and current yield analysis. Dividend stocks trading at a low historical price/sales (P/S) ratio should be viewed more highly to investors due to their depressed valuation versus other higher P/S ratio stocks.  Max P/S price target is based upon company reaching its highest historical P/S ratio.  Dividend stocks should also be viewed favorably when the current yield is above historical readings for the past 10 years.  

Further information on evaluating dividend growth candidates can be found at http://seekingalpha.com/author/timothy-mcintosh/articles

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