So, what exactly are cash cow stocks? In the game of stock market woes, they could be the winning answer. Cash cow stocks, by definition, deliver steady, reliable income or other benefits with minimal oversight. Essentially, they’re the full-sized SUVs of the equities space – not flashy, but robust enough to navigate the market’s potholes. While they may not promise overnight riches, their unwavering relevance makes them invaluable, especially during a market downturn.
AbbVie (ABBV)
As a healthcare behemoth, AbbVie (NYSE:ABBV) makes a compelling case for a cash cow stock. After its acquisition of Allergan, the company now controls Botox, a product with a potentially vast market. With a forward dividend yield of 3.36% and a history of 52 consecutive dividend increases, AbbVie stands tall as a resilient cash cow stock.
Qualcomm (QCOM)
Qualcomm’s solid financials, including a forward yield of just over 2%, and a moderate payout ratio, make it a strong candidate for a cash cow stock. The company’s market capitalization of $174 billion and consistently robust free cash flow further bolster its position as a resilient player in the current market climate.
CVS Health (CVS)
Despite a challenging start to the year, CVS Health (NYSE:CVS) remains an appealing investment option with its forward yield of 3.47% and strong cash flow. The company’s low forward earnings ratio and solid buy analyst consensus make it a strong contender among the cash cow stocks.
One thing is for certain – in the face of recent market volatility, these resilient cash-cow stocks can infuse your portfolio with the much-needed confidence to weather the storm.
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