CVS Health Corporation: Trading Below Fair Value And Strong Dividend Growth

CVS Health Corporation is the largest pharmacy health care provider in the U.S. CVS enjoys a strong market share in the relatively stable U.S. retail drug industry. Recently, the company changed its name from CVS Caremark Corporation to CVS Health Corporation to reinforce its health and wellness commitments. Along those lines, CVS in early September 2014 announced that it would no longer sell cigarettes and other tobacco products at all its pharmacy outlets.

The growth of non-traditional competitors, such as Wal-Mart, continue to put pressure on CVS's market share. The stock is trading below my $92.44 calculated fair value and has demonstrated an exceptional ability to grow its dividend at a high rate, averaging nearly 25% per year since 2005.

Source: Seeking Alpha

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