Doctors make 70% of their decisions for treatment options, drug choices and needed surgeries based on the results from lab tests.
That is certainly understandable as looking at a set of lab results can yield better insight into a patient’s overall well-being than an in-house consultation. And with better outcomes and early detection being key, the increase in the number of prescribed lab tests has continued to grow. That’s wonderful news for the top healthcare pick on our Best Dividend Stocks List.
The medical diagnostics firm has continued to make a name for itself as one of the go-to partners for hospitals, doctors and other care providers when it comes to administering required tests. And as one of the leaders in the space, the firm’s earnings, cash flows and, ultimately, dividends, have never been stronger. Our pick recently declared a 10+% hike in dividends based on continued growth.
See our original article on our pick here.
However, higher growth is just a blood vial away for our pick. That’s because it’s moving into more advanced testing. Screening for cancer using AI/big data analytics, in-house genomics and other rare disease testing is quickly becoming our pick’s bailiwick. With these higher margined tests in tow, our pick’s earnings and dividend potential should continue to grow.
To summarize, here are five reasons why you should own this stock:
- Operates more than 2,000 patient service centers and roughly tests one out of every three American adults each year.
- Continues to be on the forefront of medical testing and diagnostics with new testing centers for genetics, cancer and hepatitis B virus detection.
- Reported more than $7 billion in revenues in 2017 and saw a nearly 10% increase in cash flow from operations for the year.
- Continues to make smart M&A choices as well as strategic partnerships with hospitals, retailers and other testing facilities.
- Healthy payout ratio of around 30% and growing yield of around 1.9%.
The DARS model has been updated recently. Find out more about these changes here.