In this article, we will take a look at some of the best high yield stocks for a dividend capture strategy.
Dividend investing appears to be a simple strategy on the surface, but in reality, it requires a much deeper analysis. These stocks are best known for their long-term appeal, a trait recognized by seasoned investors. Over the years, dividend growth stocks have outperformed other asset classes during periods of economic downturns.
This can also be observed in today’s economic landscape. With the Trump administration’s trade war or soft economic data, dividend stocks have the potential to outperform, according to analysts. In addition, these equities are currently trading at lower price-to-earnings ratios than the broader market, which could be a great entry point for income investors. Wolfe Research analyst Chris Senyek also advised investors to pay attention to dividend growth stocks as they can serve as a buffer against market downturns. Here is what he said:
“Our favorite defensive dividend strategy, dividend aristocrats, is a good place for investors to ‘hide’ in the event of an economic slowdown or recessionary environment.”
For this, he recommends investing in the Dividend Aristocrats Index, which tracks the performance of companies that have achieved 25 consecutive years of dividend growth. The index is outperforming the broader market this year, surging by over 2%, compared to the market’s nearly 5% decline.
Though dividend aristocrats are gaining this year, their performance in the last two years has been less impressive. With AI taking center stage, dividend stocks were overlooked by investors, leaving many still trading at a discount. Analysts are presenting a strong outlook for dividend stocks this year because of the changing economic and political landscape. According to a report by BNY Investments, dividend stocks are poised for growth this year as tech stocks have also entered into the dividend territory last year. Combining factors of growth and income can bode well for dividend equities. As of September 2024, nearly 80% of the companies in the S&P index pay dividends to shareholders, 24% of which are from the tech sector. The percentage has grown significantly from 13% a decade ago, as reported by BNY.
Dividend yield is an important aspect of dividend investing, and investors often pay attention to yields when making investment decisions. However, falling for yield traps does more harm than good. Dan Lefkovitz, a strategist for Morningstar Indexes, made the following comment for investors with a preference for high yields:
“It’s really critical to be selective when it comes to buying dividend-paying stocks and chasing yield. Looking for the most yield-rich areas of the market can often lead you into troubled areas and dividend traps—companies that have a nice-looking yield that is ultimately unsustainable. You have to screen for dividend durability and reliability going forward.”
While dividend stocks are mostly known for their long-term appeal, some investors also reap profits in the short term through a dividend capture strategy. By using this approach, investors can buy shares of the company just before it pays dividends and then sell those shares shortly after receiving the dividend. The main aim of this strategy is to capitalize on dividend income while also benefiting from a stock’s price increase leading up to the dividend announcement. Given this, we will take a look at some of the best dividend stocks for a dividend capture strategy.
Image by Steve Buissinne from Pixabay
Our Methodology
For this list, we selected dividend stocks that will trade ex-dividend in April 2025. Ex-dividend date indicates the cutoff day to buy a stock to receive its upcoming dividend payment. These stocks have dividend yields above 2%, as of March 30. The stocks are ranked according to their ex-dividend dates.
At Insider Monkey, we are obsessed with hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
15. Realty Income Corporation (NYSE:O)
Ex-Dividend Date: April 1
Dividend Yield as of March 30: 5.69%
Realty Income Corporation (NYSE:O) is an American real estate investment trust company, headquartered in California. The company mainly invests in single-tenant commercial properties across the country. It reported a strong performance in the fourth quarter of 2024, with its revenues coming in at $1.34 billion, up significantly by 24.4% from the same period last year. The company’s Adjusted Funds From Operations (AFFO) per share also grew by 4% to $1.05 per share, which registered its 14th consecutive year of AFFO per share growth.
Realty Income Corporation (NYSE:O) has a portfolio of 15,600 properties, and nearly 80% of them are leased to retailers. The company’s holdings are mainly well-known retailers, including Dollar Tree, 7-Eleven, and Walgreens. In addition, grocery and convenience stores represent 20% of its portfolio. The company’s growing portfolio significantly contributes to its dividend policy.
Realty Income Corporation (NYSE:O) offers monthly dividends to its shareholders, which makes it a reliable option for income investors. It currently offers a monthly dividend of $0.2685 per share, having raised it by 0.2% in March. This was the company’s 130th dividend hike since it went public in 1994. With a dividend yield of 5.69%, as of March 30, O is one of the best dividend stocks for a dividend capture strategy. The stock will trade ex-dividend on April 1.
14. Sysco Corporation (NYSE:SYY)
Ex-Dividend Date: April 4
Dividend Yield as of March 30: 2.75%
Sysco Corporation (NYSE:SYY) is an American multinational company that specializes in marketing and distributing food and related products. The company’s operations span North America and Europe, and it has an extensive distribution network. In addition, it has diverse product offerings, including dairy, meat, and non-food items. This diversification has helped the company a lot over the years to mitigate risks associated with different economic cycles. In the past five years, the stock generated a nearly 88% return for shareholders.
In fiscal Q2 2025, Sysco Corporation (NYSE:SYY) reported a revenue of $20.15 billion, which showed a 4.47% growth from the same period last year. The revenue also surpassed analysts’ estimates by $49.8 million. The company’s food service volume also saw a 1.4% YoY growth. Its gross profit of $3.7 billion also showed a 3.9% growth on a YoY basis. The company’s international business remained the winner, recording a 14.5% increase in operating income and a 26.5% increase in adjusted operating income.
Sysco Corporation (NYSE:SYY)’s cash position also remained stable. In the first 26 weeks of the fiscal 2025, the company generated $498 million in operating cash flow. Moreover, it returned $803 million to shareholders, including $503 million in dividends. Currently, it offers a quarterly dividend of $0.51 per share and has a dividend yield of 2.75%, as of March 30. The company is a Dividend King with 54 consecutive years of dividend growth under its belt. It is among the best dividend stocks for a dividend capture strategy.
13. Bristol-Myers Squibb Company (NYSE:BMY)
Ex-Dividend Date: April 4
Dividend Yield as of March 30: 4.13%
Bristol-Myers Squibb Company (NYSE:BMY) is an American pharmaceutical company. The stock has surged by over 13% in the past 12 months, despite facing some challenges in the past. The company’s forthcoming patent cliffs and high debt load had resulted in the stock trading at a significant discount, with a forward P/E of 8.87. At the end of 2024, BMY’s debt totaled around $47.6 billion in comparison to its cash and marketable securities of $11.2 billion.
That said, Bristol-Myers Squibb Company (NYSE:BMY)’s growth strategy and strong dividend policy make it an attractive investment among income investors. In 2024, the company managed to secure two key approvals—one for Cobenfy and the other for Breyanzi. These drugs have the potential to generate billions in revenue for the company, contributing significantly to its growth. In the fourth quarter of 2024, BMY’s Growth Portfolio reported $6.4 billion in revenue, up 21% from the same period last year. This increase was mainly due to the strong demand for its treatments. Overall, its revenue was recorded at $12.34 billion for Q4, which also showed a 7.5% growth on a YoY basis.
Bristol-Myers Squibb Company (NYSE:BMY), one of the best dividend stocks for a dividend capture strategy, has been making regular dividend payments to shareholders for the past 93 years. In addition, the company raised its payouts for 16 years in a row. Its quarterly dividend comes in at $0.62 per share for a dividend yield of 4.13%, as of March 30. The stock will trade ex-dividend on April 4.
12. JPMorgan Chase & Co. (NYSE:JPM)
Ex-Dividend Date: April 4
Dividend Yield as of March 30: 2.31%
JPMorgan Chase & Co. (NYSE:JPM) is an American multinational financial services and banking company. It operates across multiple key sectors of the financial industry. It owns a major bank that caters to both consumers and businesses, runs an investment banking division that assists companies in raising capital, and manages a wealth management arm that oversees investments for high-net-worth clients. With the exception of insurance, these operations cover all major areas of the finance sector.
In the fourth quarter of 2024, JPMorgan Chase & Co. (NYSE:JPM) delivered strong financial results, with net income surging 50% to $14 billion and net revenue climbing 10% to $43.7 billion. Although net interest income dipped 3% to $23.5 billion, noninterest revenue saw a notable 29% jump, reaching $20.3 billion. Operating expenses declined 7% to $22.8 billion, but when adjusted for the prior year’s $2.9 billion FDIC special assessment, they actually rose 5%, reflecting increased spending on compensation, brokerage fees, and technology. The bank also set aside $2.6 billion for credit losses, with net charge-offs rising to $2.4 billion, mainly due to higher losses in its Card Services division.
JPMorgan Chase & Co. (NYSE:JPM) is one of the best dividend stocks for a dividend capture strategy with stock trading ex-dividend on April 4. The company offers a quarterly dividend of $1.40 per share, having raised it by 12% in March. In addition to dividend growth, it also returned $3.5 billion to shareholders through dividends in the most recent quarter. The stock has a dividend yield of 2.31%, as of March 30.
11. Edison International (NYSE:EIX)
Ex-Dividend Date: April 7
Dividend Yield as of March 30: 5.69%
Edison International (NYSE:EIX) ranks eleventh on our list of the best dividend stocks for a dividend capture strategy. The California-based public utility company specializes in the generation of electricity from multiple sources, including natural gas, nuclear energy, and renewables. The company provides services to public authorities as well as commercial, residential, industrial, and agricultural sectors, among others. The stock has been under pressure for some time now, declining by over 27% since the start of 2025.
Edison International (NYSE:EIX) has been facing challenges due to the fallout from the Los Angeles wildfires, with ongoing investigations examining whether its equipment played a role in sparking the fires. Earlier this month, Los Angeles County filed a lawsuit against the company. However, it may take months before its level of involvement is determined and the legal disputes are resolved.
Despite these ongoing challenges, Edison International (NYSE:EIX) has maintained its dividend growth, supported by a solid cash position. By the end of the latest quarter, the company had around $200 million in cash and cash equivalents. In addition, its operating cash flow increased to $3.8 billion over the first nine months of the year, up from $2.5 billion in the same period the year before.
Edison International (NYSE:EIX) currently pays a quarterly dividend of $0.8275 per share. In December 2024, the company achieved its 21st consecutive annual dividend hike. The stock supports a dividend yield of 5.69%, as recorded on March 30.
10. McCormick & Company, Incorporated (NYSE:MKC)
Ex-Dividend Date: April 7
Dividend Yield as of March 30: 2.21%
McCormick & Company, Incorporated (NYSE:MKC) is an American food company, headquartered in Maryland. The company deals in flavoring products used in a wide variety of beverages. The company’s business is divided into two main segments: Consumer and Flavor Solutions. The Consumer segment, which serves households directly, benefits from higher profit margins. Meanwhile, the Flavor Solutions segment supplies flavors to food manufacturers and food service providers. Although this division operates with lower profitability, it plays a crucial role in driving long-term revenue growth. In recent years, McCormick has prioritized expanding its brand portfolio and reinforcing its presence in global markets. Since the start of 2025, the stock has delivered a 7.35% return to shareholders.
In the first quarter of 2025, McCormick & Company, Incorporated (NYSE:MKC) reported revenue of $1.6 billion, which grew by nearly 1% from the same period last year. However, the revenue missed analysts’ estimates by $8.6 million. The company reported an operating income of $225 million, down from $234 million in the same period the previous year. On an adjusted basis, operating income stood at $225 million, compared to $238 million a year earlier. Its net income of $162.3 million also declined by 2.2% from the prior-year period.
Despite reporting losses on various fronts, McCormick & Company, Incorporated (NYSE:MKC)’s cash position remained somehow stable. The company ended the quarter with $103 million available in cash and cash equivalents and generated $115.5 million in operating cash flow. Due to this cash position, the company is recognized as a strong dividend payer, with 39 consecutive years of dividend growth under its belt. Currently, it pays a quarterly dividend of $0.45 per share for a dividend yield of 2.21%, as of March 30.
9. Verizon Communications Inc. (NYSE:VZ)
Ex-Dividend Date: April 10
Dividend Yield as of March 30: 6.03%
Verizon Communications Inc. (NYSE:VZ) is a New York-based telecommunications company. In February, the company introduced AI connect, a suite of products and solutions designed to help businesses scale AI workloads efficiently. The company estimates that the total addressable market exceeds $40 billion and believes its expanding fiber infrastructure and programmable network are well-equipped to meet the secure connectivity demands of AI data centers. The stock is generating strong returns this year, surging by nearly 12% since the start of 2025.
Verizon Communications Inc. (NYSE:VZ) reported strong fourth-quarter results for 2024, with revenue reaching $35.7 billion, reflecting a 1.6% increase from the previous year. This growth was largely driven by higher customer acquisitions in both mobile wireless and internet services. In the mobile wireless segment, net postpaid phone subscriber additions rose to 568,000, up from 449,000 a year earlier. Revenue from this segment increased 3.1% year-over-year to $20 billion, marking its 18th consecutive quarter of growth.
In addition to its financial strength, Verizon Communications Inc. (NYSE:VZ) remains a cash cow, appealing to investors because of its cash generation and dividend history. In FY24, the company generated $37 billion in operating cash flow, and its free cash flow came in at $19.8 billion. Its quarterly dividend comes in at $0.6775 per share for an attractive dividend yield of 6.03%, as of March 30. The company has been rewarding shareholders with growing dividends for the past 18 years. The stock will trade ex-dividend on April 10.
8. General Dynamics Corporation (NYSE:GD)
Ex-Dividend Date: April 11
Dividend Yield as of March 30: 2.23%
General Dynamics Corporation (NYSE:GD) is an aerospace and defence corporation, based in Virginia. As one of the two leading military shipbuilders, the company also produces tanks and land vehicles, making it a key supplier for the US Army. Additionally, it operates one of the largest defense-focused IT and services divisions, providing revenue stability even when the Pentagon scales back on equipment purchases.
In the fourth quarter of 2024, General Dynamics Corporation (NYSE:GD) generated $13.3 billion in revenue, reflecting a 14.3% increase from the same period a year earlier and surpassing analysts’ expectations by $521.4 million. By year-end, the company’s backlog stood at $90.6 billion. Management also estimated the potential contract value—including unfunded indefinite delivery, indefinite quantity (IDIQ) contracts, and unexercised options—at $53.4 billion. When combined, the total estimated contract value reached $144 billion, representing a 9.1% increase from the prior year.
General Dynamics Corporation (NYSE:GD) has a solid cash position as it generated $2.2 billion in operating cash flow in the most recent quarter. This figure represented 188% of its net earnings. Moreover, the company distributed $3 billion to shareholders via dividends and share repurchases. In March, it hiked its quarterly dividend by 5.6% to $1.50 per share. This was the company’s 28th consecutive year of dividend growth. With a dividend yield of 2.23%, as of March 30, GD is one of the best dividend stocks for a dividend capture strategy.
7. American Tower Corporation (NYSE:AMT)
Ex-Dividend Date: April 11
Dividend Yield as of March 30: 3.15%
American Tower Corporation (NYSE:AMT) is an American real estate investment trust company that specializes in wireless and broadcast communications infrastructure in several countries. The company reported mixed earnings in the fourth quarter of 2024, with revenues of $2.55 billion falling by $8.6% from the same period last year. However, the revenue beat analysts’ estimates by $35.7 million. Total property revenue of $2.48 billion grew by 2% on a YoY basis. The company recorded a substantial increase in net income, soaring to $1,231 million from just $13 million in the previous year, reflecting the effectiveness of its growth strategies and cost management efforts.
American Tower Corporation (NYSE:AMT) primarily generates revenue by leasing space on its extensive portfolio of communication sites, which include towers, distributed antenna systems, and recently acquired data center facilities. This segment is the backbone of its business, accounting for approximately 99% of total revenue. As of December 31, 2024, the company managed 148,097 sites globally, with the US and Canada contributing more than half of its revenue. It has been actively pursuing strategic growth initiatives, particularly in data center expansion, as it seeks to capitalize on emerging opportunities and drive future success.
American Tower Corporation (NYSE:AMT)’s cash position also remained strong in the quarter. The company generated $1.12 billion in operating cash flow and $746 million in free cash flow, which grew by 5% and 22.2%, respectively, on a YoY basis. It recently announced a 4.9% hike in its quarterly dividend to $1.70 per share. The stock supports a dividend yield of 3.15%, as of March 30. AMT will trade ex-dividend on April 11.
6. Hormel Foods Corporation (NYSE:HRL)
Ex-Dividend Date: April 14
Dividend Yield as of March 30: 3.82%
Hormel Foods Corporation (NYSE:HRL) is an American multinational food processing company, based in Minnesota. During its recent earnings call, the company reaffirmed its leadership in the market, driven by its well-established and growing brands, including SPAM, Applegate, Hormel Black Label, and Jennie-O. These brands saw volume growth during the quarter while expanding their market share. In the food service segment, the company experienced broad-based growth across multiple categories, particularly in its premium offerings. Additionally, the international segment benefited from increased demand for its global brands and products, especially in the Chinese market.
In fiscal Q1 2025, Hormel Foods Corporation (NYSE:HRL) reported revenue of $2.99 billion, reflecting a nearly 1% decline from the same period a year earlier. Despite the drop, revenue still exceeded analysts’ expectations by $42 million. Operating income totaled $228 million, with an operating margin of 7.6%.
Hormel Foods Corporation (NYSE:HRL) also enjoys strong financial flexibility, with its cash and cash equivalents growing to $840.4 million in the most recent quarter, from $741.8 million in the year-ago period. The company also paid $155 million worth of dividends to shareholders. Its quarterly dividend sits at $0.29 per share for a 3.82% dividend yield, as of March 30. HRL is one of the best stocks for a dividend capture strategy as the company maintains a 51-year track record of consistent dividend growth.
5. The Buckle, Inc. (NYSE:BKE)
Ex-Dividend Date: April 15
Dividend Yield as of March 30: 3.69%
The Buckle, Inc. (NYSE:BKE) is an American fashion retailer that sells a wide selection of apparel, accessories, and footwear for men, women, and children. In a marketplace dominated by fast-fashion brands, large department stores, and online retail giants, Buckle has managed to stand out by targeting underserved markets, offering exclusive private-label products, and providing personalized customer service. These unique strategies help the company maintain strong profit margins and a distinct brand identity, even while competing with major players like Zara, H&M, and Amazon.
In the fourth quarter of 2024, The Buckle, Inc. (NYSE:BKE) reported a revenue of $379.2 million, which fell slightly by 0.83% from the same period last year. The revenue surpassed analysts’ estimates by over $59,000. Its comparable store net sales surged by 3.9% from the prior-year period. In addition, online sales also registered a 6.4% growth to $69.7 million. The company reported a net income of $77.2 million, or $1.54 per share, slightly down from $79.6 million, or $1.60 per share, in the same quarter of fiscal 2023.
The Buckle, Inc. (NYSE:BKE) ended the quarter with nearly $267 million available in cash and cash equivalents. The company offers a quarterly dividend of $0.35 per share for a dividend yield of 3.69%, as of March 30. Though it doesn’t hold any dividend growth track record, the company has been making regular dividend payments for over 20 years. The stock will go ex-dividend on April 15.
4. ARMOUR Residential REIT, Inc. (NYSE:ARR)
Ex-Dividend Date: April 15
Dividend Yield as of March 30: 6.89%
ARMOUR Residential REIT, Inc. (NYSE:ARR) is an American real estate investment trust company, based in Florida. The company mainly invests in mortgage-backed securities. It is popular among investors because of its policy of paying monthly dividends to shareholders. On March 25, it declared a monthly dividend of $0.24 per share, which was in line with its previous dividend. The company has been paying regular dividends to shareholders for the past 14 years. Its dividend yield, on March 30, came in at 6.89%.
ARMOUR Residential REIT, Inc. (NYSE:ARR) mainly focuses on expanding homeownership access to a wide range of individuals. Its approach to delivering shareholder value centers on strategically investing in and managing a diversified, leveraged portfolio of mortgage-backed securities (MBS). The company prioritizes maintaining steady dividend payments for common shareholders, emphasizing long-term objectives over short-term market fluctuations.
In the fourth quarter of 2024, ARMOUR Residential REIT, Inc. (NYSE:ARR) reported a net interest income of $12.7 million, marking a remarkable 119% increase from the previous year. Distributable earnings available to common stockholders totaled $46.5 million, translating to $0.78 per common share. Additionally, the company raised $136.2 million in capital through the issuance of 7,205,653 common shares under its at-the-market offering program.
3. EOG Resources, Inc. (NYSE:EOG)
Ex-Dividend Date: April 16
Dividend Yield as of March 30: 3.08%
EOG Resources, Inc. (NYSE:EOG) is a crude oil and natural gas exploration and production company, headquartered in Texas, US. On February 28, the company announced that it is expanding its shale expertise to the Persian Gulf through a partnership with Bahrain’s Bapco Energies to develop an onshore tight-gas field. Drilling is expected to begin in the second half of 2024, pending final approvals, though production is not slated to start until 2026.
In the fourth quarter of 2024, EOG Resources, Inc. (NYSE:EOG) posted an adjusted earnings per share (EPS) of $2.74, surpassing estimates by $0.17. However, revenue declined 12.14% year-over-year to $5.6 billion, falling short of expectations by $360 million. The company allocated $6.2 billion to capital expenditures in 2024, which contributed to a 3% increase in oil production and an 8% rise in total company volume.
EOG Resources, Inc. (NYSE:EOG) maintained a solid financial position, closing 2024 with $7.1 billion in cash. The company generated $5.4 billion in free cash flow over the year and returned $5.3 billion to shareholders, exceeding its commitment to distribute at least 70% of annual free cash flow. It has upheld its regular dividend without cuts or suspensions for 27 consecutive years, growing its dividend rate at twice the industry average since 2019.
EOG Resources, Inc. (NYSE:EOG) currently offers a quarterly dividend of $0.975 per share, having raised it by 7.1% in 2024. The stock’s dividend yield comes in at 3.08%, as of March 30. EOG will trade ex-dividend on April 16.
2. Colgate-Palmolive Company (NYSE:CL)
Ex-Dividend Date: April 17
Dividend Yield as of March 30: 2.24%
Colgate-Palmolive Company (NYSE:CL) is a US-based multinational company that is well-known for its strong presence in Oral Care, Personal Care, Home Care, and Pet Nutrition. As a consumer staples company, it tends to remain stable during economic downturns, as essential products like dish soap and deodorant are less likely to be cut from household budgets compared to discretionary items. While many companies in the household goods sector have struggled with declining sales volumes due to industry challenges, Colgate-Palmolive has managed to defy the trend.
In its fiscal 2024 earnings report, Colgate-Palmolive Company (NYSE:CL) crossed the $20 billion revenue mark for the first time, reflecting a 4% year-over-year increase. This also marked its sixth consecutive year of organic sales growth within or exceeding its target range of 3% to 5%. Strong sales momentum and improved operational efficiency bolstered its bottom line, with net income and earnings per share achieving double-digit growth from the previous year.
Colgate-Palmolive Company (NYSE:CL) holds a strong dividend growth history, spanning 62 consecutive years. This dividend growth was supported by the company’s robust balance sheet. In FY24, it reported an operating cash flow of over $4 billion, which grew by 10% from the same period last year. Its free cash flow of $3.5 billion also surged from $3 billion in the prior-year period. The company also returned $3.4 billion to shareholders during the year through dividends and share repurchases. The stock has a dividend yield of 2.24%, as of March 30.
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.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
