CVS Health Corp. (CVS, Financial) and The PNC Financial Services Group Inc. (PNC, Financial) announced upcoming dividends on Jan. 2, 2020. These large caps have been distributing dividends for decades.
CVS Health
CVS Health shares were slightly down 0.17% at $74.16 per unit at close on Thursday. The company announced a 50 cents quarterly cash dividend per common share, which is in line with the previous payment.
The Woonsocket, Rhode Island-based health services and pharmaceutical retailer will pay the quarterly dividend to its shareholders on Feb. 3. In order to benefit, investors must be on the company’s record not later than Jan. 23. The ex-dividend date is scheduled for Jan. 22.
Based on Thursday’s closing price, the payment generates a 2.7% trailing 12-month dividend yield and a 2.69% forward dividend yield.
CVS Health has continuously paid dividends since Feb. 1, 1986, and increased them by 5.6% over the past three years, by 12.7% over the past five years and by 20.7% over the past 10 years.
The company sustains the payment of the quarterly dividend with $7.53 billion available in cash on hand as of Sept. 30, 2019. Twelve-month operations are currently generating cash inflows of approximately $12.5 to $13 billion.
GuruFocus assigned the company a financial strength rating of 4 out of 10 and a profitability rating of 8 out of 10.
The dividend has been a significant catalyst to the share price of CVS Health as the stock has grown nearly 125% over the last decade to levels that are overvalued according to the Peter Lynch chart.
The stock has a market capitalization of $96.48 billion, a price-earnings ratio of 21.94, a price-book ratio of 1.54 and a price-sales ratio of 0.38.
Vanguard Group Inc. is the company's largest fund holder with 7.95% of outstanding shares, followed by State Street Corp. with 4.66% and Wellington Management Group LLP with 3.11%.
The PNC Financial Services Group
Shares of The PNC Financial Services Group Inc. (PNC, Financial) were up 0.46% to $160.37 per unit on Thursday after the company announced a $1.15 quarterly cash dividend per common share, which is in line with the previous payment.
The Pittsburgh, Pennsylvania-based diversified financial services company will pay the quarterly dividend on Feb. 5 to shareholders of record as of Jan. 17. The ex-dividend date is scheduled for Jan. 16.
Based on the closing price on Thursday, the quarterly dividend generates a trailing 12-month dividend yield of 2.7% and a forward dividend yield of 2.69%.
PNC Financial has paid dividends since Feb. 1, 1986. The company has increased the dividend by 31.3% in the past year, by 25.6% in the past three years, by 17.4% over the last five years and by 15.9% over the last decade.
PNC Financial relies on $11.84 billion in cash on hand as of Sept. 30, 2019 for the payment of the quarterly dividend. From its yearly operations, the company generates a cash flow of approximately $6.5 to $7 billion.
GuruFocus has assigned the company a financial strength rating of 3 out of 10 and a profitabilty rating of 4 out of 10.
The quarterly dividend payment has helped produce a nearly 200% rise in the share price over the last 10 years. According to the Peter Lynch chart, the stock is fairly price
The stock has a market capitalization of $70.27 billion, a price-earnings ratio of 14.35, a price-book ratio of 1.41 and a price-sales ratio of 4.14.
With 7.63% of outstanding shares, Vanguard Group Inc. is the company's largest institutional holder, followed by Wellington Management Group LLP with 5.56% and Capital World Investors with 5.43%.
Disclosure: I have no positions in any securities mentioned.
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