3 US Dividend Stocks For Higher Rates Including CVS Health Stock

Rates look set to stay higher for longer as Fed officials talk openly about more hikes over the next few months, and that puts steady dividend payers back in the spotlight. Investors hunting for income and relative resilience may not want to wait until the next policy surprise to react. This article walks through three large US defensive dividend stocks exposed to this backdrop and explains why they may deserve a closer look.

The stocks in the list below are just a sample of this idea, and the full screen surfaced another 10 large-cap defensive dividend companies with equally compelling stories that are not covered here. To get straight to work on the wider universe, use the US Large-Cap Defensive Dividend Stocks screener to identify, analyze, and focus on the defensive income plays that fit your own risk and yield targets.

CVS Health (CVS)

Overview: CVS Health is an integrated US healthcare group combining insurance, pharmacy benefit management, and nationwide retail pharmacies that focus on everyday medical needs.

Operations: CVS Health generates around US$200.5b from Health Services, US$143.8b from Health Care Benefits, and US$139.7b from Pharmacy & Consumer Wellness, almost entirely in the United States.

Market Cap: US$112.5b

CVS Health fits this defensive dividend screen because it leans on non-discretionary healthcare spending and then layers a broad, income-backed ecosystem around it.

"The decline is contributed largely to a $1.1 billion charge connected with its Medicare and Individual Exchange businesses and a whopping $1.2 billion restructuring charge for store closures."

The real test for CVS Health is how one unresolved pressure on future healthcare profitability ultimately feeds through to margins and dividend headroom.

That pressure is exactly what makes the full narrative for CVS Health worth reading for understanding how CVS Health could turn restructuring pain into a stronger, income-backed model in the future.

Tyson Foods (TSN)

Overview: Tyson Foods is a global meat and prepared foods producer that anchors the screener as a large-cap, dividend-paying consumer staple.

Operations: Tyson Foods generates about US$21.9b from Beef, US$17.2b from Chicken, US$10.3b from Prepared Foods, and US$6.2b from Pork, with a US$2.1b intersegment offset and US$2.3b from International.

Market Cap: US$18.1b

For investors looking for income that can weather higher for longer rates, Tyson Foods offers exposure to everyday protein consumption where demand usually proves less sensitive to borrowing costs or economic mood swings, and where small efficiency gains can matter a lot for cash flow.

"Industry-wide digital and operational transformation is happening at a slower pace among competitors. Tyson's leadership in automation, data analytics, and supply chain modernization is described as driving structural net margin improvement and product traceability. This is characterized as allowing the company to capture premium pricing and reduce costs ahead of peers, providing ongoing earnings tailwinds."

What really matters from here is how one unseen pressure in the protein cycle ultimately feeds into Tyson Foods' pricing power and margins.

That pressure is exactly where the cycle can start to turn, and the full narrative for Tyson Foods shows how Tyson Foods could convert that squeeze into accelerating cash generation and pricing strength.

Hershey (HSY)

Overview: Hershey manufactures and sells chocolate, confectionery, salty snacks, and pantry products worldwide, anchored by its flagship US candy brands.

Operations: Hershey generates about US$9.8b from North America Confectionery, US$1.4b from North America Salty Snacks, and US$1.0b from International, mostly in the US.

Market Cap: US$32.2b

For an income-focused screen, Hershey offers something simple but powerful, everyday treats that people keep buying, backed by long-running dividend discipline.

"The 2025 cocoa shock, which involved a ~60% GAAP EPS collapse driven largely by non-cash hedge mark-to-market, obscured an underlying cash engine that remained intact."

What happens to that income profile depends on how one unresolved cost pressure feeds through to future pricing power and profit margins.

That cost squeeze is exactly where the full narrative for Hershey maps how Hershey could turn cocoa volatility into an earnings profile that separates cash strength from headline noise.

Seeking Alternatives Before Momentum Flies

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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