CVS Health Named Best Dividend Stock with Insider Buying and 2.36% Yield (CVS)
In this series, we run through the most recent dividend channel ”Dividend rank” report, and then we select only companies that have been the subject of insider buying in the last six months. A company’s officers and directors typically have a unique insider’s view of the company, and probably the only reason an insider would choose to take their hard-earned money and use it to buy stock in the market. free is that they expect to make money – maybe they find the stock very undervalued, or maybe they see exciting progress within the company, or maybe both. So when stocks appear that see insider buying and are also top-ranked, investors are wise to take heed. One such company is CVS Health Corporation (ticker: CVS), which was purchased by director Edward J. Ludwig.
On February 10, Ludwig invested $105,904.40 in 1,000 shares of CVS, at a cost per share of $105.90. In Friday’s trading, bargain hunters could buy shares of CVS Health Corporation (Symbol: CVS) and hit a cost base 12.0% cheaper than Ludwig, with shares changing hands as low as 93.19 $ per share. It should be noted that Ludwig has earned $1.10/share in dividends since the time of their purchase, so they are currently down 11.0% from their purchase on a total return basis. Shares of CVS Health Corporation are currently trading at +0.67% on the day. The chart below shows the one-year performance of CVS shares, compared to its 200-day moving average:
Looking at the chart above, CVS’s low point in its 52-week range is $79.335 per share, with $111.25 as its 52-week high – compare with a last trade of $93.58. For comparison, here is a chart showing the prices at which insider buying has been recorded over the past six months:
|02/10/2022||Edward J. Ludwig||Director||1,000||$105.90||$105,904.40|
The DividendRank report noted that among the coverage universe, CVS stocks displayed both attractive valuation metrics and strong profitability metrics. The report also cited CVS Health Corporation’s strong quarterly dividend track record and favorable long-term multi-year growth rates in key fundamental data points.
The report stated, ”Dividend investors who approach investing from a value perspective are generally more interested in finding the strongest, most profitable companies that are also trading at an attractive valuation. This is what we seek to find by using our proprietary DividendRank formula, which ranks the coverage universe according to our various profitability and valuation criteria, to generate a list of the most “interesting” stocks, intended for investors as a source of ideas that merit further research.”
The annualized dividend paid by CVS Health Corporation is $2.2/share, currently paid in quarterly installments, and its most recent ex-dividend date was 07/21/2022. Below is a chart of CVS’s long-term dividend history, which the report highlights as critically important. Indeed, studying a company’s past dividend history can be a great help in judging whether the most recent dividend is likely to continue.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.