Serving over 100 million people in the United States annually through its Caremark prescription management business and Aetna health insurance business, CVS Health (NYSE: CVS) is a major health solutions company. These businesses support the company's near-$90 billion market value, making it the third-largest health care plan provider in the country. Its network features more than 40,000 physicians, pharmacists, nurses and nurse practitioners.
As the U.S. population continues to age, demand for Caremark and Aetna's services should increase. Meanwhile, CVS has been expanding further via more acquisitions, including its $10.6 billion purchase of primary care operator Oak Street Health and an $8 billion deal for home-health company Signify Health.
That's a lot to digest, so CVS has said it will pause mergers and acquisitions as it works on integration for the time being.
Meanwhile, its dividend recently yielded 3.5% and remains sustainable; the company was recently paying out about 75% of its income in dividends.
CVS Health was already a top name in pharmacy retail, and now has health insurance and pharmacy benefits businesses; together, those areas should provide long-term stability for investors. CVS Health's forward price-to-earnings (P/E) ratio of 8 is far lower than the health care plan industry's average of 13. (The Motley Fool has recommended CVS Health.) ¦
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