5 Best Dividend Stocks to Invest In According to Hedge Funds

4. CVS Health Corporation (NYSE:CVS)

Number of Hedge Fund Holders: 88

Dividend Yield as of May 21: 2.84% 

America’s leading health solutions company, CVS Health Corporation (NYSE:CVS), provides advanced health care from pharmacy services and health plans to health and wellness.

On May 20, Mizuho bumped up its price target on CVS Health Corporation (NYSE:CVS) from $102 to $110, while maintaining an ‘Outperform’ rating on the shares. The target boost represents an upside of over 17% from the current share price.

Mizuho believes that the managed care group delivered strong results in the recent Q1 earnings season. The firm boosted its target on CVS due to the lower risk of negative medical loss ratio changes through the end of this year.

Similarly, earlier on May 8, Wells Fargo also raised its price target on CVS Health Corporation (NYSE:CVS) by $1 and kept an ‘Overweight’ rating on the shares (read more details here).

The positive analyst attention comes after CVS delivered better-than-expected results for its Q1 on May 6. Moreover, the company raised its full-year 2026 profit guidance to a range of $7.30 to $7.50 per share, up from its forecast of $7 to $7.20. CVS now expects its full-year total revenues to be at least $405 billion, while its cash flow from operations is projected to be at least $9.5 billion.

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