Whether you’re in retirement or not, generating reliable income on your investments can help you navigate even the toughest market cycles.
That’s why I want to bring you one reliable dividend stock to own for the long-term.
It’s an essential business with nearly 10,000 locations that are continuing to operate even amid the coronavirus outbreak.
And with a dividend yield 5.3X higher than the 10-year U.S. Treasury, it can help you weather the ups and downs of the unpredictable market we find ourselves in today.
Here it is…
CVS Health Corp (NYSE: CVS)
You know CVS. Surely, you’ve been to one or more of their 9,967 retail pharmacy locations at one point or another.
But in case you’re unaware, CVS Health Corp. (NYSE: CVS) is an American healthcare company that owns CVS Pharmacy, a retail pharmacy chain, CVS Caremark, a pharmacy benefits manager, Aetna, a health insurance provider, and many other brands.
A lot of investors forget CVS bought Aetna (the nation’s third-largest health insurer at the time) for $69 billion back in 2018… But that’s what gives it a huge advantage over its main competitors, Walgreens and Rite Aid.
You see, about 40 million people rely on Aetna to help them make decisions about their health care and their health care spending.
So, CVS is becoming the preferred pharmacy of choice for these customers because it’s reducing the cost of providing care to Aetna’s customers.
CVS is able to do that and still remain profitable because it doesn’t have to spend as much money acquiring new customers now that it owns Aetna.
And the health information CVS gains from Aetna allows it to better services its 75 million plan members who rely on the pharmacy for their prescription drugs.
CVS stock took a hit with the broader market back in March, falling 32.5%. Since then, it has rallied 21%, but I still think the company is undervalued.
Fortunately, that allows long-term investors to lock in a 3.2% dividend (almost double the average S&P 500 company) at its current $63 share price.
As long as the stores remain open, look for CVS to reach new all-time highs by the end of the year.
The $3 “Stock of the Year”
Picture the perfect stock for a moment.
What would it look like?
No doubt it would have hundreds of billions in revenue – more than tech giants like IBM, Facebook and Google.
It would probably be a leader in cutting-edge technology like smartphones, robotics, e-commerce and medical equipment.
It would have tens of thousands of unbreakable patents.
It would pay an enormous dividend.
It would be on the verge of dozens of blockbuster announcements that would send the stock higher and higher.
And most of all…
It would trade ultra-cheap – less than $3.
It seems crazy that such a stock exists.
And you've likely never heard of it.
Because it trades under a secret name.
Seriously, it's true.
My colleague – stock-picking legend Alexander Green – just gave the most shocking live presentation regarding this “perfect stock.”
He says this single stock alone could pay for your retirement.