In this article, we will be looking at the 5 best healthcare dividend stocks to buy now. To read our detailed analysis of the healthcare sector, you can go directly to see the 10 Best Healthcare Dividend Stocks to Buy Now.
5. Pfizer Inc. (NYSE: PFE)
Number of Hedge Fund Holders: 65
Dividend Yield: 3.2%
Pfizer Inc. (NYSE: PFE) is yet another medical company renowned for its successful vaccination production to curb the spread of the coronavirus pandemic. It ranks 5th on our list of the best healthcare dividend stocks to buy now. The company manufactures biopharmaceutical products for distribution across the world and is based in New York.
This July, Mizuho raised its price target on shares of Pfizer Inc. (NYSE: PFE) from $42 to $43, while Truist also assumed coverage of Pfizer Inc. (NYSE: PFE) shares with a Buy rating in the same month.
In the second quarter of 2021, Pfizer Inc. (NYSE: PFE) had an EPS of $1.07, beating estimates by $0.09. The company’s revenue was $18.98 billion, up 60.81% year over year, and beating estimates by $249.96 million. Pfizer Inc. (NYSE: PFE) has gained 40.18% in the past 6 months and 32.87% year to date.
By the end of the first quarter of 2021, 65 hedge funds out of the 866 tracked by Insider Monkey held stakes in Pfizer Inc. (NYSE: PFE) worth roughly $2.01 billion. This is compared to 63 hedge funds in the previous quarter with a total stake value of approximately $1.8 billion.
4. Merck & Company, Inc. (NYSE: MRK)
Number of Hedge Fund Holders: 79
Dividend Yield: 3.4%
Merck & Company, Inc. (NYSE: MRK) is a healthcare company operating through its Pharmaceutical and Animal Health segments to offer a range of medical products. The company has collaborations with other companies like AstraZeneca PLC (NASDAQ: AZN) and others. It ranks 4th on our list of the best healthcare dividend stocks to buy now.
Robyn Karnauskas, an analyst at Truist, holds a Buy rating on shares of Merck & Company, Inc. (NYSE: MRK) as well, as of this July. The analyst’s price target on the shares was set at $92.
In the second quarter of 2021, Merck & Company, Inc. (NYSE: MRK) had an EPS of $1.31, missing estimates by $0.04. The company’s revenue was $11.40 billion, up 4.87% year over year and beating estimates by $208.55 million. Merck & Company, Inc. (NYSE: MRK) has gained 8.19% in the past 6 months and 0.95% year to date.
By the end of the first quarter of 2021, 79 hedge funds out of the 866 tracked by Insider Monkey held stakes in Merck & Company, Inc. (NYSE: MRK) worth roughly $6.5 billion. This is compared to 82 hedge funds in the previous quarter with a total stake value of approximately $7.12 billion.
3. Patterson Companies, Inc. (NASDAQ: PDCO)
Number of Hedge Fund Holders: 20
Dividend Yield: 3.5%
Patterson Companies, Inc. (NASDAQ: PDCO) is a distributor of dental and animal health products in the US, the UK, and Canada. The company operates through its Dental, Animal Health, and Corporate segments. It ranks 3rd on our list of the best healthcare dividend stocks to buy now.
An analyst at Credit Suisse, Vik Chopra, assumed coverage of shares of Patterson Companies, Inc. (NASDAQ: PDCO) this August with an Outperform rating. Chopra has also placed a $38 price target on the company’s shares.
In the fiscal fourth quarter of 2021, Patterson Companies, Inc. (NASDAQ: PDCO) had an EPS of $0.38, missing estimates by $0.14. The company’s revenue was $1.56 billion, up 21.40% year over year and beating estimates by $41.45 million. Patterson Companies, Inc. (NASDAQ: PDCO) has gained 1.61% year to date and 10.94% in the past year.
By the end of the first quarter of 2021, 20 hedge funds out of the 866 tracked by Insider Monkey held stakes in Patterson Companies, Inc. (NASDAQ: PDCO) worth roughly $142 million. This is compared to 18 hedge funds in the previous quarter with a total stake value of approximately $92 million.
2. Gilead Sciences, Inc. (NASDAQ: GILD)
Number of Hedge Fund Holders: 65
Dividend Yield: 4%
Gilead Sciences, Inc. (NASDAQ: GILD) is a research-centric biopharmaceutical company that works to develop and commercialize medicines in areas of unmet medical need in the US, Europe, and across the globe. The company offers products to treat human immunodeficiency virus (HIV) infections and to treat coronavirus, among other products. It ranks 2nd on our list of the best healthcare dividend stocks to buy now.
BMO Capital’s Matthew Luchini just this July raised his price target on shares of Gilead Sciences, Inc. (NASDAQ: GILD) from $67 to $72. The analyst holds a Market Perform rating on the stock as well.
In the second quarter of 2021, Gilead Sciences, Inc. (NASDAQ: GILD) had an EPS of $1.87, beating estimates by $0.12. The company’s revenue was $6.22 billion, up 20.88% year over year and beating estimates by $133.06 million. Gilead Sciences, Inc. (NASDAQ: GILD) has gained 10.15% in the past 6 months and 19.3% year to date.
By the end of the first quarter of 2021, 65 hedge funds out of the 866 tracked by Insider Monkey held stakes in Gilead Sciences, Inc. (NASDAQ: GILD) worth roughly $2.7 billion. This is compared to 72 hedge funds in the previous quarter with a total stake value of approximately $2.02 billion.
1. AbbVie Inc. (NYSE: ABBV)
Number of Hedge Fund Holders: 72
Dividend Yield: 4.5%
AbbVie Inc. (NYSE: ABBV) tops our list of the best healthcare dividend stocks to buy now. The company offers a range of medical products and pharmaceuticals to consumers across the globe, such as its HUMIRA and SKYRIZI products for the treatment of autoimmune and intestinal Behçet’s diseases and moderate to severe plaque psoriasis in adults, for instance.
This August, David Toung, an analyst at Argus, raised his price target on shares of AbbVie Inc. (NYSE: ABBV) from $130 to $140, keeping a Buy rating on the stock at the same time.
In the second quarter of 2021, AbbVie Inc. (NYSE: ABBV) had an EPS of $3.11, beating estimates by $0.08. The company’s revenue was $13.96 billion, up 33.90% year over year and beating estimates by $322.64 million. AbbVie Inc. (NYSE: ABBV) has gained 11.40% in the past 6 months and 12.33% year to date.
By the end of the first quarter of 2021, 72 hedge funds out of the 866 tracked by Insider Monkey held stakes in AbbVie Inc. (NYSE: ABBV) worth roughly $5.9 billion. This is compared to 83 hedge funds in the previous quarter with a total stake value of approximately $7 billion.
You can also take a look at 10 States with the Most Expensive Health Insurance and 20 Biggest Healthcare Companies By Revenue.
