CVS Health and Bristol Myers Squibb: recession-resistant dividend stocks to watch

When a recession hits, investors often rotate away from speculative, high-risk stocks and toward companies viewed as more resilient across the economic cycle. While it is not certain that a recession will arrive soon, the outlook has become more concerning in recent months, with rising oil prices and geopolitical tensions cited as contributing factors. Against that backdrop, two stocks—CVS Health and Bristol Myers Squibb—are presented as potential “safe havens” that also appear attractively valued.

CVS Health: recession resilience and valuation

For investors concerned about a downturn, CVS Health is positioned as a defensive option. The company operates a large U.S. pharmacy network, has a sizable insurance business, and is expanding its presence in primary care. This mix is described as built to perform relatively well during recessions.

The dividend program is also highlighted as a stabilizing factor. Regular payouts can help cushion market declines during downturns.

Beyond near-term defensiveness, the article argues CVS Health could benefit from longer-term demand for medical care tied to an aging population.

Valuation metrics

CVS Health is described as reasonably valued, trading at 10.3x forward earnings, compared with the healthcare sector average of 16.8x.

Bristol Myers Squibb: “cheap” valuation and product pipeline

Bristol Myers Squibb is presented as particularly inexpensive. The article notes the company is trading at 9.5x forward earnings.

It also acknowledges that Bristol Myers has faced patent “cliffs” in recent years and expects more in the future. However, the article points to new product launches intended to help offset the decline from older, off-patent medicines.

Opdivo formulation update

A specific example cited is the launch of a new, subcutaneous version of its oncology medicine, Opdivo. Opdivo has been a major growth driver, and while the drug will soon run out of patent exclusivity, the new formulation is expected to continue contributing to the company’s top line for years.

Portfolio breadth and dividend track record

The article also emphasizes Bristol Myers’ broad portfolio across multiple therapeutic areas, arguing that demand for treatments for severe, chronic, or life-saving conditions may be less sensitive to economic conditions.

Finally, it highlights the company’s dividend program, stating that Bristol Myers has not suspended or reduced its dividend in the past two decades, which is presented as evidence of its ability to navigate downturns.

Impact and positioning for recessionary portfolios

Overall, the article frames CVS Health and Bristol Myers Squibb as recession-ready options that combine defensive business characteristics with valuation metrics that are described as attractive. CVS Health is positioned as a potential long-term stock supported by healthcare demand trends, while Bristol Myers is characterized as a value-oriented choice for income seekers preparing portfolios for a recession.