Israel "Izzy" Englander's net worth tops $14 billion. He doesn't need dividend income. It's likely that most of the investors in his Millennium Management hedge fund don't, either.

However, Englander doesn't shy away from dividend stocks. His trades in the third quarter of 2024 prove it. The billionaire bought one high-yield dividend stock hand over fist in Q3.

Englander's aggressive Q3 buy

If you glance at Englander's purchases for Millennium Management in Q3, you'll probably notice he added significantly to several existing holdings. For example, the hedge fund manager increased his stake in the SPDR S&P 500 ETF Trust by 81%. He more than doubled Millennium's position in Spotify Technology.

But another trade especially stands out. Englander bought an additional 4.61 million shares of CVS Health (CVS -0.96%) in Q3, boosting his fund's position in the healthcare company by a whopping 724%.

To be sure, CVS Health remains a small position for Englander. His hedge fund's stake in CVS was worth $330 million at the end of Q3, representing only 0.29% of its total portfolio.

However, it's important to understand how diversified Millennium Management's holdings are. The hedge fund owns positions in a staggering 4,040 stocks and exchange-traded funds (ETFs). Even its biggest holding makes up less than 2.8% of the portfolio.

The good, bad, and ugly with CVS Health

As far as I know, Englander hasn't revealed why he increased Millennium's stake in CVS Health by so much. However, there are some good things to like about this healthcare stock.

For example, CVS Health's forward dividend yield stands at 4.62%. Many income investors would love to receive such a juicy yield. The company's valuation also looks attractive with shares trading at around 8.3 times forward earnings. By comparison, the forward earnings multiple of the S&P 500 healthcare sector is 18.3.

But CVS Health comes with some bad things, too. Its business hasn't performed up to expectations. As a result, the company replaced Karen Lynch with a new CEO, David Joyner, in October. CVS Health's Aetna unit continues to face challenges. Competition is heating up with Amazon expanding its same-day prescription deliveries. The pharmacy benefits management (PBM) industry is also under heavy scrutiny, creating uncertainty for CVS Caremark.

Then there's the ugly. CVS Health's share price has plunged nearly 50% below its peak set in early 2022. The beaten-down stock attempted a rally in late September and early October but subsequently gave up all of its gains and then some.

Should you buy CVS Health stock?

CVS Health recently appointed four new members to its board of directors. The appointments came after what CVS called a "productive engagement" with activist investor Glenview Capital Management. Glenview CEO Larry Robbins is one of the four new directors, along with two healthcare veterans -- Leslie Norwalk and Guy Sansone -- and OneMain Holdings CEO Doug Shulman.

With the expanded board potentially helping steer the company toward creating more value and billionaire investor Englander loading up on the stock, should you buy CVS Health too? I wouldn't go that far, at least not yet.

Shareholders may see positive changes as a result of the additions of Robbins, Norwalk, Sansone, and Shulman to CVS Health's board. However, it's too soon to know what those changes will be.

I think CVS Health could very well make a strong comeback. The company remains a powerhouse in the retail pharmacy and PBM businesses. Aetna, while struggling now, should have solid earnings potential. But CVS Health's turnaround could take a while. Investors are probably best off sitting on the sidelines for now until more evidence of improvement is visible.