13 Best Healthcare Dividend Stocks to Invest in

3. Thermo Fisher Scientific Inc. (NYSE:TMO)

Number of Hedge Fund Holders: 100

Thermo Fisher Scientific Inc. (NYSE:TMO), a multinational biotech and life sciences company, outperformed Wall Street expectations in the fourth quarter, posting earnings of $6.10 per share on revenue of $11.40 billion. Both figures exceeded analyst projections of $5.94 per share and $11.28 billion in revenue. While spending in the biotech sector has remained sluggish, potential interest rate cuts could help stimulate growth by improving access to funding.

Looking ahead, Thermo Fisher Scientific Inc. (NYSE:TMO) expects adjusted earnings for 2025 to be in the range of $23.10 to $23.50 per share, which is in line with market expectations. The company is regarded as a leader in the healthcare and pharmaceutical sectors, providing investors with exposure to industry growth without the risks tied to patent expirations or the pressure to develop breakthrough drugs. Its revenue is well-diversified, with over 80% coming from recurring sources, ensuring stability and reducing investment risk.

Thermo Fisher Scientific Inc. (NYSE:TMO)’s cash flow remained strong in the latest quarter, with operating cash flow reaching $3.3 billion and free cash flow totaling $2.8 billion. In fiscal year 2024, the company returned $4.6 billion to shareholders through dividends and share buybacks. On February 19, it announced a 10% increase in its quarterly dividend to $0.43 per share, marking its eighth consecutive year of dividend growth. The stock supports a dividend yield of 0.33%, as of March 20.