Healthcare is perhaps one of the most dynamic industries, full of opportunities for growth and stability.
For Dividend.com’s Best Dividend Stock List’s leading medical play, it’s managed to use both to its advantage. Having both an extensive portfolio of over-the-counter consumer products as well as a comprehensive catalog of state-of-art drugs and medical devices, our pick has continued to deliver rising free cash flows, earnings and, ultimately, dividend increases for investors. In fact, it’s raised its dividend twice, for a total of a 12% increase, since our addition back in May of last year.
See our original article on our pick here.
But our healthcare leader’s best days could be ahead of itself. After a series of major buyouts and M&A activities, our pick has refreshed its patent portfolio and set itself up to be a leader in a wide range of biotech drugs for tough-to-cure diseases. This should help drive future earnings and cash flows, all while keeping its moniker as a reigning dividend aristocrat.
To summarize, here are five reasons why you should own this stock:
- Dividend aristocrat that has raised its dividend for 54 years in a row.
- Massive patent portfolio of drugs, which has only gotten bigger through smart biotech M&A.
- Generated more than $15.5 billion in free cash flows last year alone.
- Operations in more than 80 countries and global leader in seven consumer healthcare categories.
- Low payout ratio of 46% and a healthy growing yield of 2.56%.