14 Best Pharma Dividend Stocks to Buy in 2026

7. CVS Health Corporation (NYSE:CVS)

Number of Hedge Fund Holders: 78

Dividend Yield as of December 29: 3.32%

CVS Health Corporation (NYSE:CVS) is one of the best dividend stocks in the pharma sector.

On December 12, Bernstein raised the firm’s price target on CVS Health Corporation (NYSE:CVS) to $87 from $86 and kept a Market Perform rating after what it described as a very positive Investor Day. The firm pointed to stronger confidence in the quality and depth of the management team, along with renewed conviction in the company’s market leadership.

A few days earlier, on December 9, CVS raised its 2025 profit forecast, signaling steady progress in its turnaround plan. Management said the company has delivered on its commitments this year and is now shifting attention toward improving consumer experiences across the business. Chief Executive David Joyner shared that message during the investor day.

The company also introduced a new consumer app designed to better connect and integrate its services. The aim is to deepen engagement and create new revenue opportunities for partners across the platform. That outlook follows a year of major changes. Joyner pushed through broad cost-cutting efforts, exited weaker markets, and strengthened leadership teams to rebuild investor confidence. The stock has reflected that shift, rising more than 80% over the year.

Looking ahead, CVS forecasts total 2026 revenue of at least $400 billion. That figure came in below the $419.26 billion expected by analysts. Growth is expected to come from a return to target margins at the Aetna insurance business and continued improvement at the CVS Caremark pharmacy benefit management unit.

CVS Health Corporation (NYSE:CVS) operates as a diversified healthcare company, with businesses spanning pharmacy services, retail health, and long-term care.