Why CVS Stock Deserves Special Attention
At first glance, CVS Health Corp (NYSE:CVS) doesn’t seem
that appealing to dividend growth investors. With an annual yield of 3.1%, it’s
not exactly a high-yield stock. And because the company has been paying the
same quarterly dividend since 2017, there hasn’t been much payout growth
lately, either.
However, if you decide to ignore CVS Health stock right now,
you could miss out on a serious dividend growth opportunity.
Let me explain.
To most consumers, CVS is known for its pharmacy chain
business. The company has more than 9,900 retail locations in 49 states, D.C.,
and Puerto Rico. Around 70% of the U.S. population lives within three miles of
a CVS pharmacy. Every day, the company’s stores serve 4.5 million customers.
(Source: “CVS Health at a Glance,” CVS Health Corp, last accessed August 21,
2020.)
At the same time, CVS Health Corp has about 1,100 walk-in
clinics and the company is one of the largest pharmacy benefits managers in the
United States.
Now, healthcare is known as a recession-proof industry,
which means healthcare stocks could come in handy this time around.
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