CVS Health (NYSE: CVS | CVS Price Prediction) and Cigna Group (NYSE: CI) are both major players in American healthcare. For retirement investors choosing between them, the key question is: do you prefer stability and income at a discount, or stronger earnings quality and capital discipline at an even steeper discount?
Valuation
Both stocks are cheap by historical healthcare standards, but Cigna is cheaper on the metrics that matter most. CVS trades at roughly 11.3x trailing adjusted earnings against approximately 9.4x for Cigna. On a forward basis, Cigna’s 2026 adjusted EPS guidance of at least $30.25 puts it at roughly 9.3x against CVS’s forward multiple near 10.7x using its 2026 adjusted EPS midpoint of $7.10. What makes Cigna’s lower multiple more compelling is that it comes alongside far stronger earnings quality. Net income grew 73.47% year-over-year in FY2025 to $5.957 billion, while CVS net income fell 62.55% to $1.728 billion, weighed down by a $5.7 billion goodwill impairment and roughly $1.2 billion in legacy litigation charges.
Winner: Cigna.
Yield and Income
This is where CVS makes its case. The stock pays $0.665 per quarter, or $2.66 annualized, and has raised its dividend from $0.55 per quarter in 2022 to the current rate. At the current price of $76.07, that annualized payout translates to a yield approaching 3.5%, a meaningful income stream for retirees. Cigna’s dividend has grown faster in absolute terms, from $1.00 per quarter in 2021 to $1.56 per quarter now, with the most recent increase declared February 5, 2026, and payable March 19, 2026. But at $265.88, the $6.24 annualized dividend yields roughly 2.3%. CVS also pairs that higher yield with a massive $402 billion revenue base and $10.639 billion in operating cash flow for FY2025.
Winner: CVS.
Long-Term Track Record and Growth Trajectory
Cigna’s consistency over the past year is difficult to argue with. The company beat adjusted EPS estimates in all four quarters of 2025: by 6.17% in Q1, 0.65% in Q2, 2.47% in Q3, and 5.65% in Q4. Evernorth Health Services, its pharmacy and specialty care engine, posted 17% revenue growth in Q4 2025, with pharmacy customers expanding to 123.6 million. The SG&A ratio improved to 5.0% from 5.9% year-over-year. Cigna also returned capital aggressively, repurchasing 11.9 million shares for approximately $3.6 billion in 2025.
CVS showed real pharmacy momentum. Same-store prescription volume rose 9.7% and Pharmacy & Consumer Wellness revenue grew 12.4% to $37.66 billion. Yet, operating income fell 45.28% year-over-year, and the company reduced its 2026 operating cash flow guidance from $10 billion to at least $9.0 billion.
On price performance, CVS is up 17.32% over the past year while Cigna is down 14.51%. However, over 10 years, Cigna has returned 101.36%, versus CVS’s just 1.84%.
Winner: Cigna.
The Verdict
Retirees who prioritize current income and can tolerate a turnaround story should consider CVS. The yield is real, the pharmacy business is growing, and the stock is cheap enough that bad news may already be priced in. But for a retirement investor building wealth over a 10-to-15-year horizon, Cigna is the stronger holding. It trades at a lower earnings multiple, has demonstrated consistent execution, is actively shrinking its share count, and has compounded returns at more than 100% over the past decade. CVS needs to prove its Health Care Benefits segment can stabilize; Cigna just needs to keep doing what it has been doing.
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