Consistency is key in investing, and it's also a key factor in the stocks you pick for dividend income. Without a regular drumbeat of profits, investors may eventually need to kiss their quarterly payouts goodbye -- and they can forget about those dividend increases, too. So let's look at two high-quality dividend stocks that have the financial sturdiness and stellar business models necessary to disburse a dividend quarter after quarter.
With a forward dividend yield of just over 3%, pharmacy chain and insurer CVS Health (CVS) deserves a place on a list of stocks for dividend-seeking investors. Many of its characteristics are actually quite amenable for that purpose. Indeed, 85% of people in the U.S. live within 10 miles of one of its stores. Costco Wholesale (COST) also sells consumer staples (among many other things) at its warehouses, and requires customers to pay a membership fee to access them. The fact that its profit margin is a scant 2.5% doesn't matter, because with trailing-12-month revenue of $234.3 billion, there's still billions in net income left to distribute to shareholders -- $1.4 billion in Q1 of 2023, to be precise.
Source: Motley Fool
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