Dividend Capture Strategy: 15 High Yield Stocks to Buy in April

1. CVS Health Corporation (NYSE:CVS)

Ex-Dividend Date: April 22

Dividend Yield as of March 30: 3.96%

CVS Health Corporation (NYSE:CVS), a leading American healthcare company, provides a range of services, from pharmacy operations and health insurance to wellness programs. The stock has significantly outperformed the broader market in 2025, surging over 53%, while the broader market has turned negative. This strong performance comes as a welcome change after a challenging year in 2024, when the company consistently failed to meet expectations. These struggles led to a leadership shift, with David Joyner stepping in as CEO, replacing Karen Lynch. His first full quarter at the helm suggests a potential shift in investor sentiment, which could contribute to steadier financial results going forward.

In the fourth quarter of 2024, CVS Health Corporation (NYSE:CVS) reported $97.7 billion in revenue, reflecting a 4.2% increase from the prior year. However, GAAP diluted earnings per share (EPS) dropped to $1.30 from $1.58, while adjusted EPS fell to $1.19 from $2.12. This decline was primarily attributed to weaker results in the Health Care Benefits segment, which faced ongoing cost pressures and the impact of lower Medicare Advantage star ratings for the 2024 payment year.

CVS Health Corporation (NYSE:CVS) currently pays a quarterly dividend of $0.665 per share and has a dividend yield of 3.96%, as of March 30. The company remains one of the strongest dividend-paying stocks, backed by a solid financial position. It ended the year with nearly $8.6 billion in cash and cash equivalents, while its operating cash flow for fiscal 2024 surpassed $9.1 billion. CVS has maintained consistent dividend payments since 1997, further reinforcing its commitment to returning value to shareholders.

Overall, CVS Health Corporation (NYSE:CVS) ranks first on our list of the best dividend stocks for a dividend capture strategy. While we acknowledge the potential of CVS as an investment, our conviction lies in the belief that some deeply undervalued dividend stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued dividend stock that is more promising than CVS but that trades at 10 times its earnings and grows its earnings at double digit rates annually, check out our report about the dirt cheap dividend stock.

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