CVS Health Surges 7% Amid Q2 Beat: Is This High-Yield Dividend Stock Due for a Comeback?

CVS Health reported Q2 2025 earnings of $1.81 per share, beating analyst estimates of $1.45. Revenue climbed 8.4% YoY to $98.92 billion. Despite a volatile 2024, the company's latest results have sparked optimism about a comeback. CVS boasts a high-yield dividend rate of $2.66, delivering a 4.26% dividend yield and a market capitalization of around $79 billion. Shares have surged 37.1% YoY, and the stock trades at a discount to the healthcare sector median.

CVS Health Corporation (CVS) reported its second-quarter 2025 earnings on July 31, delivering a strong performance that has sparked optimism about the company's potential comeback. The company's adjusted earnings per share (EPS) of $1.81 exceeded analyst estimates of $1.45, while revenue climbed 8.4% year-over-year (YoY) to $98.92 billion [1].

Despite a volatile 2024, CVS's latest results have generated fresh optimism. The company's high-yield dividend rate of $2.66 delivers a 4.26% dividend yield, making it one of the top dividend stocks in the healthcare sector. Shares have surged 37.1% year-to-date, and the stock trades at a discount to the healthcare sector median, with a forward price-to-earnings (P/E) ratio of 10.05x [2].

The company's earnings power is being driven by improved performances in its Health Care Benefits and Pharmacy & Consumer Wellness segments, which grew +11.6% and +12.5% YoY, respectively. However, the company's GAAP EPS fell to $0.80 due to two significant litigation charges tied to legacy business issues [1].

CVS's latest results also highlight the company's ability to manage significant legal and regulatory challenges. The company has set aside $833 million in opioid settlement expenses in Q2 2025, and the Department of Justice is investigating the company's Medicare Advantage practices. Despite these headwinds, CVS raised its full-year 2025 guidance, reflecting confidence in the company's core business and strategic initiatives [1].

In another strategic move, CVS inked a deal with Rite Aid, agreeing to acquire select prescription files and store locations across 15 states. This acquisition aims to broaden CVS's market reach and promise meaningful operational synergies. Additionally, the company committed a $20 billion investment over the next decade to future-proof its business [2].

References:

[1] https://monexa.ai/blog/cvs-health-q2-2025-earnings-analysis-strong-financ-CVS-2025-08-01
[2] https://www.barchart.com/story/news/33869405/this-high-yield-dividend-stock-is-staging-a-comeback-should-you-buy-shares-now