The Federal Reserve has made it clear that inflation is still the main opponent, and that interest rates could rise again if price pressures do not ease from the current 3.7% PCE level. That kind of backdrop can unsettle headline driven stocks, yet it can also highlight companies that have a record of paying reliable dividends. This article walks through 3 stocks from a High Quality Dividend Stocks screener that appear closely exposed to these cross currents.

The three dividend stocks covered below are only a small sample of the opportunities that fit this income and quality profile. The full screen surfaced 21 more companies with equally detailed stories that are not covered here. To see everything in one place, head straight into the High Quality Dividend Stocks screener to identify and analyze the highest conviction ideas that fit your own dividend and risk preferences.

CVS Health (CVS)

Overview: CVS Health is a large US healthcare company that combines an insurance business, a pharmacy benefits manager and a nationwide retail and online pharmacy network to provide medical coverage, prescription management and in store health services.

Market Cap: US$133.6b

Investors looking for reliable income in a higher rate world may want to keep CVS Health on the radar. The company sits at the crossroads of insurance, pharmacy benefits and retail pharmacies, which can help soften the impact of economic swings as people keep spending on essential healthcare. Its dividend record and size stand out at a time when the Federal Reserve is still focused on inflation and prepared to keep policy tight, since less cyclical cash flows often matter more when borrowing costs stay elevated. At the same time, high debt, recent one off charges and board turnover mean the turnaround story is still a work in progress and worth watching closely rather than assuming it is already complete.

CVS Health’s turnaround might be further along than the headlines suggest, yet the real story could sit in how its cash flows stack up against its debts. Get the CVS Health financial health report

Build your own reliable dividend shortlist

CVS Health and the other two dividend stocks in this article all surfaced through a single screener, which shows what a focused set of filters can uncover. Use our flexible Screener to combine factors like dividends, balance sheet strength and valuation into your own shortlist, or start with one of our curated Investing Ideas.

Quest Diagnostics (DGX)

Overview: Quest Diagnostics is a large US medical testing company that runs a nationwide network of laboratories and collection sites to process everything from routine blood tests to advanced cancer, neurology and genetic diagnostics for doctors, hospitals, insurers and consumers.

Operations: Quest Diagnostics generates almost all of its revenue from Diagnostic Information Services, which produced about US$11.3b of the company’s roughly US$11.6b in sales, with the business focused on the United States.

Market Cap: US$25.8b

Quest Diagnostics sits in a part of healthcare that many investors view as relatively steady, which can matter when the Federal Reserve is still talking tough on inflation and rates. The company is leaning into higher value tests in areas like Alzheimer’s, autoimmune disease and cancer, while also rolling out automation and AI projects that management expects to support margins over time. Recent Q2 2026 results beat expectations and led to higher full year guidance, yet the stock still trades well below some estimated fair values. Set that against high debt, reimbursement and policy risks, and you have a business with a mix of quality and pressure points that income focused investors may want to understand in more detail before deciding how it fits their watchlist.

Quest Diagnostics sits at the crossroads of higher value testing and automation, yet the real twist may lie in how the stock reflects that mix of opportunity and pressure. See how the latest analysis report for Quest Diagnostics might reframe the risk and reward balance investors are missing.

Smith & Nephew (LSE:SN.)

Overview: Smith & Nephew is a global medical devices company that supplies hospitals and surgeons with joint replacement implants, sports medicine tools for minimally invasive procedures, ear, nose and throat products, and a broad range of advanced wound care and regenerative solutions.

Operations: Smith & Nephew generates most of its revenue from Orthopaedics at US$2.5b, Sports Medicine & ENT at US$2.0b and Advanced Wound Management at US$1.8b.

Market Cap: £9.3b

Smith & Nephew offers a mix of dividend income and exposure to long term healthcare demand at a time when higher interest rates are putting pressure on more cyclical stocks. The company operates in procedure driven areas such as joint replacement and sports medicine, supported by specialty wound care and products such as the TESSA Spatial Surgery System and LEAF Patient Monitoring System. Earnings growth, improving margins and a P/E that compares with peers may point to a stock that some investors view as reasonably priced. However, high debt and questions around board turnover and return on equity mean the story is not risk free and may be worth examining closely before deciding how it fits into an income focused portfolio.

Smith & Nephew’s mix of procedure driven growth and dividend income often looks stronger than headline worries about debt and board turnover suggest. Read the analysis report for Smith & Nephew to see what the current P/E might be hiding.

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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.