Covered, but flat — no raise since 2024. A 2.85% yield on a 69.7% trailing payout is covered, but fuller than a low-payout payer — and the $0.665 quarterly rate is unchanged since 2024, so this is income that holds rather than compounds. The rate was re-declared Sep. 30, 2026 for payment Nov. 2, 2026.
Key risk: Health-care cost and reimbursement pressure — pharmacy and benefits margins are exposed to drug pricing, reimbursement rates, and medical-cost trends, which can squeeze the cash behind the payout.
Changes if: The trailing payout pushes well past 69.7%, or the $0.665 quarterly rate is cut. A raise after two flat years would be the first sign the flat stretch is ending.
- !Payout-coverage check: 69.7% trailing payout — $2.66 indicated against trailing earnings. Covered, but leaves less retained than a lower-payout payer.
- ✓Yield check: 2.85% indicated — $0.665/qtr × 4 at the $93.47 close on Oct. 23, 2026. Real, earned cash dividend.
- !Dividend growth check: $0.665 a quarter since 2024, after $0.605 in 2023 — no increase in the last two years, so compounding here depends on reinvestment, not raises.
What this grade doesn't say: It screens the dividend only — covered, real, compounding. It says nothing about valuation or price: a well-covered payer can still be overpriced, and its price can still fall.