Looking for high-yield dividend stocks to hold for the long term? In this article, we’ll take a deep dive into three great options that offer an attractive combination of dividends and growth potential:
1. CVS Health (NYSE: CVS)
Who is CVS Health?
CVS Health is an American healthcare company that operates a retail pharmacy chain called CVS Pharmacy, owns the Aetna insurance company, and manages pharmacies for employers and government programs. The company has a strong presence in three key areas:
- Retail pharmacy: CVS Pharmacy is the largest pharmacy chain in the United States with over 9,900 locations. It offers a wide range of prescription drugs, over-the-counter medications, and other healthcare products.
- Pharmacy benefits management: CVS Health Pharmacy Benefits Management (PBMM) is one of the largest PBMMs in the country. It manages prescriptions for over 100 million people and helps employers and government programs control the cost of prescription drugs.
- Insurance: Aetna is a national insurance company that offers a wide range of insurance products to individuals, families, and businesses. This includes health insurance, life insurance, dental insurance, and vision insurance.
What are CVS Health’s results?
CVS Health has been delivering strong results in recent years. In 2023, the company reported revenue of $290.9 billion and net income of $8.2 billion. The company’s dividend yield is 4.7%, and its dividend has grown for 10 consecutive years.
Why invest in CVS Health?
CVS Health is a stable and profitable company with a growing dividend yield. It has a strong presence in three key healthcare sectors and is well-positioned for growth in the future. The temporary issues in 2024 related to changes in the Medicare Advantage assessment system are expected to be temporary and should not have a lasting impact on the company’s long-term outlook.
2. Ares Capital (NASDAQ: ARCC)
Who is Ares Capital?
Ares Capital is the largest publicly traded business development company (BDC) in the United States. BDCs are investment companies that invest in the debt and equity of small and medium-sized businesses. Ares Capital focuses on lending to middle-market companies that are too risky for large banks. The company has a strong track record of generating high returns for its investors.
What are Ares Capital’s results?
Ares Capital reported net income of $813 million on revenue of $1.7 billion in 2023. The company’s dividend yield is 9.2%, and its dividend has grown for 11 consecutive years.
Why invest in Ares Capital?
Ares Capital is an experienced and profitable company with a high dividend yield. It invests in middle-market companies with growth potential and has a strong track record of generating high returns for its investors. However, it is important to note that BDCs are riskier than traditional equity investments, so you should only invest money you can afford to lose.
3. United Parcel Service (NYSE: UPS)
Who is United Parcel Service?
United Parcel Service (UPS) is a global logistics company that offers a wide range of package and freight transportation services. The company has a strong presence in small package delivery and also offers air and ocean freight forwarding and logistics services. In recent years, UPS has been focusing more on healthcare logistics, which is a high-margin industry.
What are United Parcel Service’s results?
UPS’s results in 2024 have been mixed. The company has seen a decline in profits due to an industry-wide downturn and operational challenges. However, the company’s revenue continues to grow, and it is on track to meet its 2026 goals. The company’s dividend yield is 4.4%, and its dividend has grown for 15 consecutive years.
Why invest in United Parcel Service?
UPS is a stable and profitable company with a long history of dividend growth. It has a strong position in small package delivery and is investing in healthcare logistics, which is a high-growth industry. While the company has faced challenges in 2024, its long-term outlook remains positive.
Conclusion – three attractive options for investors looking for high-yield dividend stocks with growth potential.
CVS Health, Ares Capital, and United Parcel Service are all three attractive options for investors looking for high-yield dividend stocks with growth potential. Each company has its own strengths and weaknesses, so it is important to do your own research before investing.
Important Disclaimers
- This article is not investment advice and should not be taken as such. It is important to do your own research and consider your individual investment goals and risk tolerance before investing in any stock.
- Past performance is not a guarantee of future results.
- High-yield dividend stocks may be associated with
