CVS Health Corporation is a strong dividend stock with diversified operations and solid cash position.

From Yahoo Finance: 2025-06-20 23:54:00

CVS Health Corporation (NYSE:CVS) is considered one of the best dividend stocks for a bear market due to its role in providing essential healthcare and retail services within communities, even during economic downturns. The company has diversified operations, expanded into primary care, and reported $4.6 billion in operating cash flow in the most recent quarter.

While higher Medicare usage and post-pandemic healthcare costs have impacted CVS Health Corporation’s revenue and earnings growth, the company maintains a solid cash position with a forecasted operating cash flow of approximately $7.0 billion by 2025. With a cash payout ratio of just 30%, there is significant room for CVS to grow its dividend.

Maintaining payouts since 1997, CVS Health Corporation offers a quarterly dividend of $0.665 per share with a dividend yield of 3.96% as of June 17. Despite the potential of CVS as an investment, certain AI stocks may offer greater upside potential and carry less downside risk, making them worth considering for investors looking for growth opportunities.

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