Key Points

• CVS is up big so far in 2025 after a tough stretch over the past few years.

• You may not have heard of it, but VeriSign plays a critical role in the internet.

• Beverage and snack giant PepsiCo is on the move, up nearly 10% in the past month.

• 10 stocks we like better than CVS Health ›

When you're building a diversified portfolio for long-term wealth, it sometimes can be easy to ignore dividend stocks in favor of high-powered growth names in the tech sector. After all, companies like Nvidia, Palantir Technologies, and Microsoft are some of the biggest players out there, and investors flock to them to lock in market-beating gains.

I love those stocks too. But I also know that it's important to have a well-rounded portfolio which includes value stocks that represent several different sectors. These value stocks provide stable earnings, solid returns, and often a sustainable dividend that pays you back for holding them.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

I get a lot of my value stocks by holding exchange-traded funds (ETFs) because they provide instant diversification. But if you're looking to add some individual dividend stocks without breaking the bank, I'm suggesting CVS Health (NYSE: CVS), VeriSign (NASDAQ: VRSN), and PepsiCo (NASDAQ: PEP).

And you can pick up shares of each for less than $500 -- and still have some money left over.

Image source: Getty Images.

1. CVS Health

CVS Health is one of the biggest pharmacy and retail companies in the U.S. It operates more than 9,000 pharmacies, as well as more than 1,000 walk-in clinics. The stock is on a roll this year, up 33% in 2025, which is a massive turnaround following a disappointing 2024.

In addition, CVS is a health insurer through its 2018 purchase of Aetna, giving the company another valuable revenue stream. Its healthcare segment, which includes Aetna, saw revenue of $34.8 billion in the first quarter, up from $32.2 billion a year ago.

The company's health services segment, which includes its pharmacy benefits manager Caremark, also saw a strong quarter with revenue of $43.5 billion versus $40.3 billion the previous year. The third segment, pharmacy, saw revenue increase from $28.7 billion in Q1 2024 to $31.9 billion in Q1 2025.

CVS projects full-year guidance to include revenue of at least $382.6 billion and adjusted earnings per share of $6 to $6.20. The company offers a strong dividend yield of 4.5%, making it an appealing healthcare dividend stock to hold for the long term.

2. VeriSign

VeriSign is a tech company, but you may not have heard of it. However, the company plays an indispensable role in how the internet works, which makes it a great long-term play for income investors looking for a stable stock.

This company provides domain name registry services and internet infrastructure. In short, it is the exclusive registrar for websites that include the .com and .net suffix, and it provides processing services for many other domains as well.

VeriSign says it handles 428.1 billion domain name system queries each day. That gives it a massive competitive moat -- nobody is going to come around and take the business, so you can be assured that the company's going to be around and profitable for a long time. Revenue in the second quarter was $409.9 million, up nearly 6% from a year ago. Earnings were $2.21 per share, up from $2.01 per share last year.

The stock doesn't offer the biggest dividend -- currently, it's only about 1%. But considering the stability this company has, plus its market-beating 34% gain in 2025, I'll take it all day as a solid long-term dividend stock.

3. PepsiCo

PepsiCo is on this list because of its solid year-to-date performance, its dividend, and its role in the market. The company is a consumer staples stock, as it makes its namesake Pepsi soda, as well as Frito-Lay snacks, Quaker oatmeal, and Gatorade sports drinks, among other products. I'll also look for a solid consumer staples stock when I'm looking for stocks to hold for a long period because they tend to be more recession-proof than a consumer discretionary stock.

Currently, PepsiCo is off a bit, dropping 5% in 2025 although it's gained nearly 10% in the last month as the company unveiled a plan to cut costs and promote healthier snack options. Its revenue in the second quarter was a solid $22.5 billion, down from $22.7 billion a year ago. But its operating profit boomed to $4.04 billion, up from $1.78 billion, and EPS of $2.23 was much better than the $0.92 per share the company earned in the second quarter of 2024.

Pepsi may not be beating the market like CVS or VeriSign, but it's a stock that is showing signs of life. Coupled with a strong 4% dividend yield, PepsiCo is a very appealing dividend stock in the consumer staples sector.

Should you invest $1,000 in CVS Health right now?

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Patrick Sanders has positions in Nvidia and Palantir Technologies. The Motley Fool has positions in and recommends Microsoft, Nvidia, Palantir Technologies, and VeriSign. The Motley Fool recommends CVS Health and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.

Major stock market indexes are down significantly this year, with many of the most valuable companies in the world leading the descent. However, some companies are performing well. These include Medical Properties Trust (NYSE: MPW) and CVS Health (NYSE: CVS), two dividend payers crushing the market. CVS Health is up by 50%, while Medical Properties Trust's shares have risen 26%.

If these companies continue defying the market meltdown, they could be a great addition to any portfolio, but only if they can deliver long after the storm has subsided. Let's find out whether it's worth purchasing their shares.

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1. Medical Properties Trust

Medical Properties Trust (MPT), a healthcare-focused real estate investment trust (REIT), faced a significant headwind when one of its largest tenants, Steward Healthcare, defaulted on rent and filed for bankruptcy. The company's revenue and earnings declined, and it was forced to slash its dividends -- twice. However, the stock is rebounding this year as the rest of the market is moving south.

MPT has moved closer to putting its issues in the rearview mirror. It signed deals to place new tenants in the facilities formerly occupied by Steward Healthcare. There is still some work to do here; MPT hasn't filled all these facilities and isn't receiving all the rent revenue from the ones it has. The new tenants will slowly ramp up rent payments until they match the full amount due in the fourth quarter of 2026.

However, MPT has made significant progress. Its portfolio is now more diversified than before, with average lease lengths of 18 years for its newest tenants. Furthermore, MPT has significantly improved its financial health by selling some facilities and issuing secured notes; it will use those proceeds to deal with short-term debt, making its near-term financial profile far more attractive.

The new MPT looks healthier than it did just a couple of years ago. But despite its strong performance this year, the stock is still down massively since its troubles first started:

MPW data by YCharts.

Some investors worry that there's still significant uncertainty involved. However, it might be worth it for long-term income-seeking investors to take a chance on the company. As a REIT, Medical Properties Trust is required to distribute 90% of its earnings as dividends, and it currently offers a juicy forward yield of 6.1%. While it has cut its payouts twice recently, its stronger financial foundation means more slashes are somewhat unlikely in the foreseeable future.

MPT is slowly getting back on track. The stock has earned serious consideration for more adventurous dividend seekers.

2. CVS Health

CVS Health dealt with significant uncertainty over the past three years due to at least a couple of factors. First, the pharmacy chain leader lost revenue from the sale of coronavirus-related products as the pandemic receded. Second, and more importantly, it struggled to contain rising costs within its Medicare Advantage business, leading to lower earnings than anticipated. CVS revised its own guidance several times, and never in the right direction, much to the dismay of investors.

However, the company might be turning a new leaf. CVS is under new management. The healthcare leader appointed a new CEO, David Joyner, in October. As if to welcome its new head, the company delivered much better-than-anticipated results in the fourth quarter. It's unlikely that much of this was due to a CEO who took over while the fourth quarter was already in full swing, so the question remains: Can CVS Health right the ship?

My view is that while it's too early to say, the business has important strengths. CVS is a trusted, diversified healthcare brand with footprints beyond its pharmacy chain unit. It's a leading health insurer, has a primary care business, and recently launched Cordavis, a subsidiary that will manufacture biosimilars.

CVS could recover in the long run, but it's not clear what moves the new CEO will make to improve the business -- one of which could be to reduce the company's dividend. That's to say nothing of the competition it will continue to face from the increasingly popular Amazon Pharmacy.

Unlike Medical Properties Trust, CVS Health has yet to take tangible steps to put its challenges behind it. But given the company's pedigree, it might also be worth considering for dividend seekers who are comfortable with some risk and volatility.

Should you invest $1,000 in Medical Properties Trust right now?

Before you buy stock in Medical Properties Trust, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Medical Properties Trust wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $509,884!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $700,739!*

Now, it’s worth noting Stock Advisor’s total average return is 820% — a market-crushing outperformance compared to 158% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of April 10, 2025

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Prosper Junior Bakiny has positions in Amazon. The Motley Fool has positions in and recommends Amazon. The Motley Fool recommends CVS Health. The Motley Fool has a disclosure policy.