Buy Low, Hold Long: 2 Crushed Dividend Stocks To Buy For High Yields And Long-Term Gains

Successful companies sometimes face events that could affect their stock performance. However, overcoming these obstacles is essential to achieving significant profits over the long term. The key is to maintain devotion to known winners even through difficult times.

CVS Health Corp CVS and Gilead Sciences, Inc. GILD stand out from the recent general upward trend in the stock market. Despite facing different challenges, these healthcare giants are attractive options, especially for dividend-oriented investors. 

CVS Health

CVS Health has yet to meet expectations with poor financial performance over the past 18 months primarily attributed to lower income from COVID-19 vaccination sales. During this time frame, the corporation has repeatedly lowered its projections.

For long-term investors, CVS Health has several strengths despite significant uncertainties. Its large pool of potential patients gives it a competitive edge over several biosimilar manufacturers in a highly competitive sector. Moreover, there are still many opportunities for development inside the vast and growing health care sector.

Even if CVS Health faces difficulties, its robust ecosystem and well-known brand name help it recover. Furthermore, its dividend program appeals to income investors. 

Over the past decade, CVS Health has increased dividends by 142%, offering a forward yield of 4.64%, significantly surpassing the S&P 500 average of 1.35%. With a solid outlook, the company’s dividend is expected to remain secure for the foreseeable future, making it a compelling choice for income-focused investors despite recent market underperformance.

Under Lynch’s leadership, CVS has actively expanded into primary care. In May, it acquired Oak Street Health for $10.6 billion and, in 2022, it entered into a deal to acquire Signify Health for $8 billion.

Gilead Sciences

As a leading industry player in cancer, virology, and HIV, Gilead Sciences offers a wide range of medications. Despite regulatory obstacles in recent years, Veklury, a COVID-19 antiviral made by the GS, has maintained consistent income and earnings.

Gilead Sciences reported $6.1 billion in income in the first quarter — a 5% year-over-year rise. The HIV drug Biktarvy’s recorded $2.9 billion in sales, up 10% yearly, accentuates this strong result. Biktarvy’s U.S. market share rose to 49%, up from 46% in the same quarter last year.

Gilead is also intensifying its efforts in oncology, with nearly a dozen programs in phase three studies and many more in earlier development stages. With over 50 programs in its pipeline, even a few approvals or label expansions each year could significantly boost the company’s revenue.

Gilead’s dividend program remains attractive, offering a forward yield of 4.58%. Over the past decade, the company has increased its payouts by 79%. Given its strong pipeline and market position, Gilead will likely continue raising dividends through 2034.

Are You Missing Out On Higher Yields?

The current high-interest-rate environment has created an incredible opportunity for income-seeking investors to earn massive yields, but not through dividend stocks… Certain private market real estate investments are giving retail investors the opportunity to capitalize on these high-yield opportunities and Benzinga has identified some of the most attractive options for you to consider. 

For example, the Jeff Bezos-backed investment platform just launched its Private Debt Fund, which provides access to a pool of short-term loans backed by residential real estate with a target 7% to 9% net annual yield paid to investors monthly. The best part? Unlike other private credit funds, this one has a minimum investment of only $100. 

Don't miss out on this opportunity to take advantage of high-yield investments while rates are high. Check out Benzinga's favorite high-yield offerings.