When it comes to finding the best combination of stability and growth, the healthcare sector can’t be beaten. Where else can you get relatively inelastic demand as well as the chance to participate in some cutting-edge technology? Not many places, and this combination is exactly how you would describe our Best Dividend Stocks List pick in the healthcare industry.
Our pick has long been one of biotechnology’s elder statesmen and built an empire of profits from its portfolio of blockbuster drugs for decades now. That’s helped support a massive cash position and some hefty dividend and buyback growth. Its latest payout increase was a whopping 9.85%.
And, yet, those dividend jumps will continue.
As they say in biotech and healthcare, you’re only as good as your pipeline. Luckily, our pick has a very robust one. That includes a new series of cancer-fighting medicines that have the potential to disrupt the entire oncology sector. Revenues here as well as across its entire pipeline will keep the dividends humming along for decades further. Its robust cash profile allows it to conduct some hefty M&A as well.
All in all, our new healthcare pick could be the best blend of growth and stability around.
Check out our original pick here.
To summarize, here are five reasons why you should own this stock:
- Blockbuster portfolio of biotech drugs generated revenues of roughly $6 billion in the third quarter of 2018 alone. An increase of 2% year-over-year.
- Since the firm started paying a dividend in 2011, our pick has grown its quarterly payout by over 400%.
- Replacing its aging pipeline with new drugs as well as launching a portfolio of biosimilars on its existing blockbusters to limit lost revenues.
- New technology that could upend the entire oncology market and send billions of new revenues its way.
- Healthy payout ratio of 41% and growing yield of 2.89%.
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