Is CVS Health Corporation (CVS) The Best Healthcare Dividend Stock to Invest in?

We recently published a list 13 to invest in the best health care profit stock. In this article, we are going to take a look at the CVS Health Corporation (NYSE: CVS) where the investment LEALTH is against the other best profitable stock of health care.

The US health care sector has been at the forefront since the emergence of Covade 19 in 2020, which has led to a significant change in the industry. Television’s rise, virtual consultation, and technological developments have renovated ways to provide health care services.

Over the past two decades, the healthcare sector has extended a great deal in relation to the wider economy, as it appears in the growing part of its overall domestic product (GDP). According to a CNBC report, in 2003, health care costs increased by 15.7 % of US GDP, which increased by about 1.7 percent points over the next decade, reaching 17.4 percent in 2013. Today, it can increase about 18.4 % of GDP, and trends for medical services by 20 %. Healthcare services, progress in medical technology, and increasing costs. The elderly population, especially as Baby Boomers retires, has significantly increased the need for medical care, while prolonged life expectations have increased prolonged use of health care. In addition, the spread of chronic conditions such as diabetes, cardiovascular diseases, and obesity has played an important role in increasing costs. The latest achievements of diagnosis, treatment and pharmaceuticals – although beneficial – often come with high costs, and further enhance the expansion of this sector.

The health care industry has spread to the overall economy, with health care companies facing a faster revenue rise over the last five years compared to the wider market. During this period, the revenue of the health care sector has increased by about 61 %, while the overall market has more than 38 % growth, as CNBC reported. However, despite this strong revenue performance, the health care sector is behind the wider market index, which is driven by a rapid expansion of the technology sector.

The health care sector faced a tumultuous year in 2024. During the first half, investors attracted industries such as technology and communication services, especially linked to the growing influence of AI, which left the health care stock behind. However, as the market rally expanded in the second half of the year, health care stocks were recovered, while some classes continue to fight the infectious diseases with the imbalance of supply and demand. Beyond these challenges, the basic issues and the uncertainty of the policy have created additional obstacles in some parts of the sector. Although some regulatory pressures may be reduced with the incoming administration, others – such as drug prices – expect them to be a permanent problem.

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