10 Best Dividend Stocks for a Bear Market

7. CVS Health Corporation (NYSE:CVS)

Number of Hedge Fund Holders: 73

Even during economic downturns, people continue to rely on medications, essential consumer products, and affordable local healthcare. CVS Health Corporation (NYSE:CVS) serves as a convenient healthcare and retail destination within communities.

The company’s overall business remains solid, thanks to its diversified operations and multiple sources of revenue. In recent years, it has expanded its presence in primary care and launched a subsidiary called Cordavis to focus on developing and marketing biosimilar drugs. Its broad reach across communities and wide range of services are key advantages.

Lately, higher Medicare usage and increased post-pandemic healthcare costs have impacted the company’s revenue and earnings growth. However, CVS Health Corporation (NYSE:CVS) remains profitable and maintains a solid cash position. In the most recent quarter, it reported $4.6 billion in operating cash flow. Looking ahead to 2025, the company has raised its full-year operating cash flow forecast from around $6.5 billion to approximately $7.0 billion.

In addition, CVS Health Corporation (NYSE:CVS) appears to have significant room to grow its dividend. With a cash payout ratio of just 30%, even doubling that figure would still leave it within a sustainable range.

Due to this strong cash generation, CVS Health Corporation (NYSE:CVS) has maintained its payouts since 1997. Currently, it offers a quarterly dividend of $0.665 per share and has a dividend yield of 3.96%, as of June 17.