Health care remains a dynamic market, full of innovation and advances. For those stocks at the forefront of these advances, it can result in billions of dollars’ worth of sales and profits. Our latest Best Health Care Dividend Stocks list pick has been at the forefront of this movement since the 1980s and has delivered on its promise in both drug development and shareholder rewards!
In the search for the Best Health Care Dividend Stocks, 16 factors are scored across Health Care sector dividend stocks and only the best combination of attractive yield, dividend safety, returns potential and low returns risk receive a Buy rating. Our process is systematic, goal focused and designed for moderate risk investors with a long-term horizon seeking allocation to Health Care.
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Our pick was one of the first players in the biotech space, cementing itself as an antiviral leader. That early positioning has helped our pick grow with a blockbuster portfolio of drugs, billions in sales, and a balance sheet that is larger than the GDPs of some countries. Going forward, our pick has continued to use its massive cash flow to not only reward its investors but to also continue its drug pipeline advances through M&A and research.
All in all, this well-covered large-cap Biotech/Pharma stock is yielding an attractive 3.49% with a $3.000/shr forward dividend that is paid quarterly. Their $108.3B market cap ranks 8th out of 17 dividend stocks in the Biotech/Pharma industry, the largest being Johnson & Johnson (JNJ) at $427.1B, and they have $25.2B in debt and $7.6B in cash.
The stock has support from both the sell-side and buy-side. Analysts are overweight-rated on average with expectations for EPS to grow a modest 6% next year. Relative to the 52-week highs, the stock is outperforming the S&P 500 at -4% vs -10% and is one of the better performing Biotech/Pharma dividend stocks, which are -13% as a group.
Year-to-date, the stock has returned 0% vs 9% for the S&P 500 and -6% for the Biotech/Pharma industry.