10 Best High-Yield Dividend Stocks To Invest In

4. CVS Health Corporation (NYSE:CVS)

Number of Hedge Fund Holders: 63

Dividend Yield as of January 20: 5.06%

CVS Health Corporation (NYSE:CVS) is an American leading health solutions company that provides advanced health care from pharmacy services and health plans to health and wellness. The company posted strong earnings for Q3 2024, with revenue totaling $95.4 billion, marking a year-over-year increase of over 6.3%. The results were driven by strong performance in the Health Services and Pharmacy & Consumer Wellness segments. However, they also emphasized the need for a unified approach across the company to address the macroeconomic challenges impacting the Health Care Benefits segment.

CVS Health Corporation (NYSE:CVS) is generating strong returns in 2025, surging by more than 19% since the start of the year. However, the stock is down by nearly 29% in the past year. The main cause of the decline in the company’s stock value is its Pharmacy and Consumer Wellness division, where the anticipated benefits of integrating this segment with the health businesses have not yet materialized. The adjusted operating income for this division has dropped from $7.26 billion in 2021 to an expected range of $5.70-$5.75 billion in 2024. In addition, front-store revenue is projected to decrease by 6.2%, while the online segment faces increasing competition from major players like Amazon.

CVS Health Corporation (NYSE:CVS) is a solid dividend payer because of its cash position. The company generated $7.2 billion in operating cash flow in the first nine months of the year. It ended the quarter with $6.9 billion available in cash and cash equivalents. It is one of the best dividend stocks on our list as the company has never missed a dividend since 1997. It currently pays a quarterly dividend of $0.665 per share and has a dividend yield of 5.06%, as of January 20.

Insider Monkey’s database of Q3 2024 showed that 63 hedge funds held stakes in CVS Health Corporation (NYSE:CVS), up from 60 in the previous quarter. These stakes are worth over $4.2 billion.