Check Out These Healthcare Dividend Stocks In The Stock Market Today
Inflation is becoming the hot new word when it comes to the stock market. Now, like it or not, it seems like inflation will be with us for a while. Sure, you could join the crowd and park your money in Apple (NASDAQ: AAPL). After all, Apple is deemed by many as a safe haven with its pricing power and strong balance sheet. That may work for some investors. But for others, dividend stocks with growth potential have a significant place in their portfolio.
To choose a sector to focus on, investors have to examine factors at play and how to take advantage of them. With a steadily aging population in the U.S. and globally, demand for health care services would likely continue rising. And that is where healthcare dividend stocks come into the picture.
What’s more, the downward trajectory of the stock market in recent weeks has also caused some investors to be more conservative. Therefore, the allure of investing in dividend stocks would be increasingly in focus. After all, companies that pay out regular dividends are often profitable and time-tested, which makes them perfectly suited to help you navigate short-term market downside. With all this in mind, do you have a list of healthcare dividend stocks to help you navigate the volatility in the stock market today?
Best Healthcare Dividend Stocks To Watch Right Now
- AbbVie Inc. (NYSE: ABBV)
- Medical Properties Trust Inc. (NYSE: MPW)
- Royalty Pharma plc (NASDAQ: RPRX)
- CVS Health Corp. (NYSE: CVS)
- Amgen Inc. (NASDAQ: AMGN)
AbbVie
Pharmaceutical giant AbbVie is an attractive income play for many investors. The drugmaker currently pays out more than 4.1% dividend yield, making it one of the highest dividend stocks among its industry peers. More notably, the company has boosted its dividend yield by a whopping 225% since 2013. All of this is made possible with the company’s strong pipeline of treatments spanning numerous medical fields. Among the core areas of AbbVie’s focus are immunology, neuroscience, eye care, oncology, and gastroenterology.
On the financial front, the company’s business remains healthy with a total revenue of $14.34 billion in its latest quarter. Despite its massive operations, AbbVie does not seem to be slowing down anytime soon. Abbvie has radically transformed its product portfolio ahead of the patent expiration for the anti-inflammatory medicine Humira. That aside, the company still boasts a solid lineup of drugs that could continue to drive top and bottom line growth. With all that said, would you consider adding ABBV stock to your watchlist anytime soon?
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Medical Properties Trust
Medical Properties Trust is a REIT that owns nearly 450 healthcare facilities around the U.S. and eight other countries. The company is also a triple-net lease REIT, which means its tenants are responsible for taxes, upkeep, and maintenance on the properties. That keeps the company’s costs of ownership low. As long as people continue to visit medical facilities for health care, this REIT should continue to generate cash flows for its investors. As of late, the company is paying a dividend yield of around 5.2%.
What’s more, the company has increased its dividend for eight consecutive years with a compound annual growth rate of 4.2%. For prospective investors, there isn’t much to worry about with Medical Properties’ dividend yield. Even though its yield is a little high, it doesn’t appear to be too good to be true. It has a defensible business model focusing on the healthcare industry. Its portfolio is diversified across 52 hospital operators. With these in mind, would you consider adding MPW stock as an alternative way to generate passive income?
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Royalty Pharma
Royalty Pharma, as the name suggests, owns royalties on drugs from other pharmaceutical companies. It doesn’t develop drugs on its own. Instead, the company gives drug developers cash upfront in exchange for a long-term royalty. And that is usually a few percentage points of revenue. While it initially was a big hit with investors, the company’s shares however, have since reversed course this year. Investors who are bullish with the company’s business model can take advantage of the dip. Although its dividend yield of around 1.8% isn’t going to amount to much, it is without a doubt a source of reliable income.
While Warren Buffett may have slashed some of his health care holdings, the legendary investor initiated a new position in RPRX stock. What’s so attractive about the business model that attracted Buffett, you ask? Well, that’s because it largely eliminates the risk of investing in early stage drugmakers. And that simply means the company has a higher chance of success without having to deal with the setbacks posed by clinical trials. Considering all this, would RPRX stock make your list of best healthcare dividend stocks to buy now?
CVS Health
CVS Health is a health care company that owns a retail pharmacy chain, a pharmacy benefits manager and also a health insurance provider. It does this through CVS Pharmacy, CVS Caremark, and Aetna respectively. In essence, it helps people to navigate through the health care system by improving access, lowering costs, and being a preferred partner for every aspect of their health care journey. At recent prices, CVS stock offers a 2.2% yield. And I won’t be surprised if the payout continues to rise over the next few years.
At its investors day earlier this month, CVS outlined its aim to reimagine its stores as health care destinations. The company wants customers to come to its stores for primary care, such as routine checkups. In addition, CVS also sees opportunities in mental health which include connecting people to therapists, according to CEO Karen Lynch. With the company’s vision to reinvent itself, would you consider investing in CVS stock?
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Amgen
Last but not least, Amgen is another drugmaker with high dividend yields. Earlier this month, the company announced it will increase its dividend by a hefty 10%. With that increase, investors will now be earning a dividend yield of 3.3%. For the uninitiated, the company is one of the largest independent biotech companies in the world. It develops and manufactures innovative human therapeutics by using advanced human genetics to unravel the complexities of disease.
Last month, the company announced that the European Medicines Agency has adopted a positive opinion recommending conditional marketing authorization of LUMYKRAS, for the treatment of adults with advanced non-small-cell lung cancer with KRAS G12C mutation and who have progressed after at least one prior line of systemic therapy. If approved, this will be the first targeted therapy available in the European Union for this mutation. With this exciting piece of news, do you have AMGN stock on your watchlist today?
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