Below we presented the list of 5 best healthcare dividend stocks. For a detailed discussion and a more comprehensive list see the 10 Best Healthcare Stocks To Buy Now.
5. Merck & Co., Inc. (NYSE: MRK)
Merck & Co., Inc. (NYSE: MRK) is one of the largest pharmaceutical companies in the world, with a market cap of over $200 billion. The New York-based company has a dividend yield of 3.28%. In November, the company declared a quarterly dividend of $0.65 per share, a 6.6% increase from prior dividend of $0.61.
Merck and Eisai (OTCPK:ESALF) recently announced positive results from a study evaluating Merck’s Keytruda and Eisai’s Lenvima in patients with advanced endometrial cancer.
According to Insider Monkey’s analysis of 816 hedge funds, Warren Buffett’s Berkshire Hathaway is one of the 80 hedge funds that are bullish on Merck, as of the end of the third quarter. The Oracle of Omaha’s firm owns 22.40 million shares of the company, worth $1.86 billion.
In its Q1 2020 Investor Letter, Saturna Capital Corporation, the investment management company of Sextant Mutual Funds, said the following about Merck.
“Bristol-Myers and Merck benefited from low valuations, strong balance sheets, and attractive dividends going into the crisis, minimizing the negative fallout.”
4. Pfizer Inc. (NYSE: PFE)
Pfizer is in the spotlight after a vaccine made by the company in collaboration with Germany’s BioNTech proved to be 95% effective preventing laboratory-confirmed COVID-19 illness, based on clinical trials data. The vaccine is now approved in North America and Europe and Pfizer is eyeing to make at least 50 million doses by the end of this year.
On Dec. 11, Pfizer declared a first-quarter 2021 dividend of $0.39 per share, up 3% from the dividend of $0.38 per share for the fourth quarter of 2020. The first-quarter 2021 cash dividend is 329th consecutive quarterly dividend paid by Pfizer.
Out of the 816 hedge funds tracked by Insider Monkey, 66 had positions in Pfizer, as of the end of the third quarter, with a total worth of these investments totaling $2.12 billion. Among these hedge funds is Warren Buffett’s Berkshire Hathaway, which holds $136.22 million Pfizer shares as of the end of September.
3. Johnson & Johnson (NYSE: JNJ)
New Jersey-based Johnson & Johnson is one of the best healthcare dividend stocks, with a variety of healthcare products and 2.65% dividend yield. Despite several PR problems and heavy fines amid one of the company’s products link with cancer, Johnson & Johnson increased its quarterly dividend by 6.3%, from $0.95 per share to $1.01 per share.
Johnson & Johnson recently completed enrollment of participants for the first late-stage trial of its COVID-19 single-dose vaccine candidate. The trial has 45,000 individuals enrolled and data from the process is expected by the end of January. If the study shows the vaccine is effective and safe, the company plans to submit an emergency use authorization application to the U.S. Food and Drug Administration in February.
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2. AbbVie Inc (NYSE: ABBV)
AbbVie Inc (NYSE: ABBV) has a dividend yield of over 5%. Since 2013, the Illinois-based company famous for its arthritis drug Humira has consistently increased its dividend, from $0.40 per share to $1.30 per share that is to be paid in February 2021.
AbbVie recently said its arthritis drug Upadacitinib met all primary and ranked secondary endpoints in an ongoing Phase 2b/3 study. The treatment is intended to be used when methotrexate does not work effectively. The company also recently revealed positive data from studies concerning its treatment for Chronic Lymphocytic Leukemia (CLL).
AbbVie stock is up over 15% year to date. Legendary investor Warren Buffett’s Berkshire Hathaway owns a $1.86 billion stake in the company, as of the end of the third quarter.
1. Bristol-Myers Squibb Co (NYSE: BMY)
Bristol-Myers Squibb Co (NYSE: BMY) is a solid dividend stock having a 3.1% yield and years of consecutive hikes. The company recently announced that it will raise its dividend by 8.9% to $0.49 per share in 2021. This comes after a 9.8% hike to $0.45 per share quarterly dividend announced by the company last year. Since 2010, Bristol-Myers’ dividend has risen consistently from $0.32 per share to the present levels.
The New York-based company in November won an approval from the European Commission for Opdivo (nivolumab), its cancer drug which it is pitching as a second-line treatment for certain forms of esophageal squamous cell carcinoma. The drug will be the first immunotherapy to be approved for a gastroesophageal cancer in the E.U.
In its Q3 2020 Investor Letter, Generation PMCA, managed by co-founders Randall Abramson and Herb Abramson, said the following about Birstol-Myers:
“Bristol Myers Squibb is a leading biopharmaceutical company focused on oncology, autoimmune diseases, cardiovascular diseases, and fibrosis. The market has been overly concerned with the loss of exclusivity of Revlimid in 2 years and Eliquis in 5 years. We believe the company has the ability to offset these patent expirations via M&A (it recently announced the acquisition of MyoKardia) and its compelling pipeline, including TYK-2, Opvido, Ozanimod, and Zeposia. To account for the risks associated with drug development and M&A, our valuation models assume zero growth after the next 5 years. The company has a 2.9% dividend yield and our FMV is $75.”
Please also see 20 Biggest Healthcare Companies By Revenue and 10 States with the Cheapest Health Insurance
