President Trump has finally started to fulfill one of his campaign promises and that’s to tackle rising healthcare costs.
While his plan is a bit vague at the moment on actual policy points, one thing is for sure, and that’s finding a way for people to ultimately pay less for their healthcare. For our healthcare diagnostic Best Dividend Stocks List pick, this is money in the bank.
The outsourcing of routine tests and blood work continues at a rapid pace. Often, it’s very expensive for a doctor’s office or even a hospital to own/run a lab. But, guess who pays for those costs? That’s right, you and me. And this is one instance where economies of scale continue to play right into our pick’s hands. As one of the largest networks of labs and testing centers, our pick can do the job at a fraction of the costs of many hospitals and offices. And with doctors making 70% of their decisions for treatment options, drug choices and needed surgeries based on the results from lab tests, these tests are a critical step in the healthcare value chain.
And they are only getting more important.
Thanks to advances in genetic testing, personalized medicine is coming to a physician’s office near you. Offering advanced cancer and other genetic testing, our pick is quickly moving into the forefront of the personalized medicine space.
All of this will only increase our pick’s already torrid pace of dividend and cash flow growth – not that it needs the help. Our pick has managed to increase its annual payout by more than 4 times over the last seven years. With healthcare demand still growing and the focus continuing to be on lowering costs, our pick is well placed to keep on prescribing plenty of gains for shareholders.
To summarize, here are five reasons why you should own this stock:
- Big beneficiary of Trump’s new plan to lower healthcare fees by offering services to doctors and hospitals at a fraction of the cost.
- 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 $7.5 billion in revenues in 2017 and saw a 20%+ increase in earnings per share for the year.
- Continues to benefit from transformative deals including partnering with one of the largest health
- Healthy payout ratio of around 30% and a growing yield of around 1.74%.
Check out our original take on the stock here.