Is CVS Health a Defensive Pick Among the Best Performing in 2025 Dividend Stocks?

CVS Health Corporation (NYSE:CVS) is included among the 15 Best Performing Dividend Stocks So Far in 2025.

CVS Health Corporation (NYSE:CVS) is an American multinational healthcare company. It has grown far beyond being just a pharmacy chain. Alongside filling prescriptions, the company runs in-store clinics that provide services such as lab tests, health screenings, vaccinations, and basic treatments for minor injuries. The company also owns Aetna, the health insurer it acquired in 2018, which covers about 36 million members, making it the fifth-largest insurer in the U.S.

On the pharmacy side, CVS Health Corporation (NYSE:CVS) holds a dominant 27% share of the nationwide prescription market. The business is performing strongly across the board. In its second-quarter results released on July 31, both revenue and earnings surpassed Wall Street’s expectations. Management also raised its full-year earnings guidance, moving the forecast up from $6.00– $6.20 per share to $6.30– $6.40. The upbeat report fueled investor optimism, driving the stock up 18% in August.

CVS Health Corporation (NYSE:CVS) is also a solid dividend payer, offering regular dividends to shareholders since 1997. Currently, it pays a quarterly dividend of $0.665 per share and has a dividend yield of 3.64%, as of September 15.

While we acknowledge the potential of CVS as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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