Is CVS Health a Great Dividend Stock?

CVS Health (NYSE: CVS) is the nation's largest chain pharmacy retailer, with control of nearly 25% of the market. It also has the reputation as a solid dividend stock with stable and consistent payments. However, CVS has underperformed the market lately, down about 1% over the past year compared to the S&P 500's 15% gain.

A large reason behind investors' skepticism about CVS is the looming competition from Amazon's (NASDAQ: AMZN) new online pharmacy. The e-commerce giant has an impeccable track record in disrupting the bottom lines of brick-and-mortar retailers. Luckily, CVS has one trick up its sleeve that would at least ensure the safety of its dividend and core business for the medium term.

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Source Fool.com