It’s no secret that healthcare has been a volatile sector over the last year or so. A variety of forces – from bills to scrapping Obamacare to drug-pricing outrages – have caused stocks in the industry to move more like a roller coaster than like the gentle plains of the mid-west. However, despite the overall bounciness, Dividend.com’s pick in the healthcare sector managed to deliver a 19% return in just five months.
This return has also crushed the S&P 500 by a wide margin. Being one of the go-to names in the medical testing space, our pick has built an empire of steady cash flows and profits over the twenty years since its spin-off. And that continues to this day.
See our original article on our pick here.
In the few months since selecting our healthcare stock, our pick has continued to generate more contracts with healthcare providers and has expanded further into new and exciting areas. These areas have contributed to a strong year-over-year earnings growth of 63.4% in the one quarter reported since making our pick. Gains in revenues, EPS, operating income, margins and operating cash flow have all strengthened – indicating that our pick could see more gains in the months ahead.
To summarize, here are five reasons why you should own this stock:
- Serves about half of the physicians and hospitals in the U.S. and touches the lives of 30% of all American adults each year.
- Continues to be on the forefront of medical testing and diagnostics with new testing centers for genetics and hepatitis B virus detection.
- On track to eclipse 2016’s generated revenues of approximately $7.5 billion.
- Continues to partner with great healthcare leaders and retail sites.
- Low payout ratio of around 33% and a healthy growing yield of 1.64%.