CVS - CVS Health: Downside Movement Is Overdramatic

2024-05-26 13:14:39 ET

Summary

• CVS Health Corp's share price has fallen, presenting an attractive entry opportunity with a current dividend yield of 4.8%.
• The risk profile includes slashed guidance and increased costs, but these issues are not unique to CVS and may be temporary.
• CVS has shown consistent dividend growth over time and has a potential upside of 28.5% based on average Wall St. price targets.
• When interest rates start to come down, we will likely see CVS's price start to recovery alongside the healthcare sector.

Overview

There's something magical about collecting a dividend from business that I recently visit. For most of my life, I've lived within walking distance from my local CVS Health Corp ( CVS ) and now I get a chance to become more than just a customer of their business. Now that the price has come down significantly, this may present an attractive opportunity for entry to pick up shares at a lower price point and ride the recovery back upward. However, being that the business is so parallel to Walgreens ( WBA ), I want to fully analyze what the risk profile looks like....

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