CVS dividend: payment and cash coverage
CVS's current dividend is $2.66 per share, with the forecast keeping the rate at $2.66 in 2027 before increases in 2028 and 2029. In 2024, CVS paid $6,396 million in dividends and buybacks against $6,326 million of free cash flow; in 2025, buybacks fell to zero while dividends continued.
How much does CVS pay in dividends per share?
The dividend stays stable first because management has stated that leverage improvement takes priority. The base keeps the current $2.66 rate in 2027, then raises it to $2.72 in 2028 and $2.80 in 2029. The bear holds it at $2.66 through 2028 before cutting it to $2.00 in 2029. The bull reaches $2.80 in 2028 and $3.00 in 2029.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| EPS, diluted | 1.39 | 3.66 | 6.47 | 3.26 | 6.02 |
| Real free cash flow per share | 5.72 | 4.58 | 7.60 | 9.83 | 11.48 |
| Free cash flow per share | 6.14 | 5.01 | 8.06 | 10.17 | 11.85 |
| − Dividends paid, per share | 2.67 | 2.67 | 2.43 | 2.20 | 1.98 |
| − Share buybacks, per share | 0.00 | 2.40 | 1.56 | 2.65 | 0.00 |
What this means. Real free cash flow per share is lower than free cash flow per share because we subtract the value of shares given to employees as pay.
Is CVS's dividend covered by its cash?
Shareholder payments added pressure. In 2024, CVS paid $6,396 million in dividends and buybacks against $6,326 million of free cash flow. In 2025, buybacks fell to zero while dividends continued. Net debt stood at $36,534 million in 2022 and $53,972 million in 2025, despite improving from 2024. The table shows how these competing uses of cash fit together.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| Free cash flow | 7,807 | 6,326 | 10,395 | 13,450 | 15,745 |
| − Dividends paid | 3,397 | 3,373 | 3,132 | 2,907 | 2,625 |
| − Share buybacks | 0 | 3,023 | 2,012 | 3,500 | 0 |
| Paid to shareholders | 3,397 | 6,396 | 5,144 | 6,407 | 2,625 |
| Paid out, % of free cash flow | 43.5% | 101.1% | 49.5% | 47.6% | 16.7% |
What this means. In 2024, the company paid shareholders more than the cash its business produced, so it had to use other cash or borrow money to cover the difference.
What could change CVS's dividend?
The base case would gain support if Aetna remains within guidance in 2027, adjusted EPS reaches the preliminary outlook and operating cash flow funds dividends, investment and debt reduction without a major buyback contribution.
| October 2027 | October 2028 | October 2029 | |
|---|---|---|---|
| Net asset value | 84,633 (82,088 / 85,651) | 90,227 (83,170 / 93,178) | 96,466 (83,608 / 101,994) |
| Shares (millions) | 1,285 (1,285 / 1,274) | 1,286 (1,291 / 1,270) | 1,287 (1,298 / 1,265) |
| Dividends per share | 2.66 (2.66 / 2.66) | 2.72 (2.66 / 2.80) | 2.80 (2.00 / 3.00) |
| Price to net asset value | 1.15 (0.85 / 1.40) | 1.20 (0.75 / 1.55) | 1.25 (0.65 / 1.70) |
What this means. Price to net asset value shows how much investors pay for each dollar of the company's assets after debts; a number above one means the share price is higher than those assets per share.
What is CVS's dividend yield against its price?
Cash flow offers another test. Free cash flow is operating cash after spending on property and equipment. CVS generated about $10.4 billion in 2023, $6.3 billion in 2024 and $7.8 billion in 2025. But regulated insurance subsidiaries must retain capital for future claims, so consolidated cash is not automatically cash the parent can use for debt repayment, dividends or buybacks. The dividend yielded 2.9%, and management has prioritized deleveraging while pausing buybacks for 2026.
At $90.39 and 10.6 times forward earnings, the price implies about $8.53 of earnings per share over the next twelve months. That is above the $7.90–$8.10 range in current full-year 2026 adjusted guidance, so the stock already assumes further recovery. A low forward P/E is cheap only if its earnings denominator arrives.