Three Dividend Growers Emerge as Treasury Yields Reach New Highs

As US Treasury yields reach multi-decade highs, investors are seeking solid businesses that quietly raise their dividends while keeping payout ratios in check. This article highlights three stocks from a curated list of dividend growers with yields around 2% to 5%, providing a glimpse into how steady income and earnings can work together.

CVS Health (CVS), a US healthcare group, is generating revenue through its Caremark PBM and specialty pharmacy engines, which support a 2- to 5% dividend. However, the company's margin question remains as cost pressures reshape the path of future margins and dividend headroom.

Caledonia Mining (CMCL) operates gold mines in Zimbabwe, using cash flow from its Blanket Mine to support a progressive dividend. The business matters due to its modest but growing payout, with new projects building optionality around how long that income stream can keep rising.

Procter & Gamble (PG), a consumer goods company, sells everyday products like Tide and Pampers, providing steady cash flows that support sustainable dividend and earnings growth. Its higher operating margins and wide moat indicate competitive advantages over its competitors.