5 Defensive Healthcare Dividend Stocks To Invest In

In this article, we discuss 5 defensive healthcare dividend stocks to invest in. If you want to read our detailed analysis of the healthcare sector and dividend stocks, go directly to read 12 Defensive Healthcare Dividend Stocks To Invest In. 

5. AbbVie Inc. (NYSE:ABBV)

Number of Hedge Fund Holders: 74

AbbVie Inc. (NYSE:ABBV) is an Illinois-based pharmaceutical company that primarily focuses on research, development, and commercialization of pharmaceuticals. On September 8, the company declared a quarterly dividend of $1.48 per share, which was in line with its previous dividend. The stock has a dividend yield of 4.05%, as of October 22. The company has been raising its dividends consistently for the past 50 years, which makes it one of the best dividend stocks in the healthcare sector.

At the end of Q2 2023, 74 hedge funds tracked by Insider Monkey reported having stakes in AbbVie Inc. (NYSE:ABBV), compared with 75 in the previous quarter. The consolidated value of these stakes is over $2.3 billion.

4. Cigna Corporation (NYSE:CI)

Number of Hedge Fund Holders: 74

Cigna Corporation (NYSE:CI) is a global health services company that operates in the healthcare and insurance industries. In the second quarter of 2023, the company reported revenue of $48.6 billion, which showed a 6.8% growth from the same period last year. For FY23, it expects to generate over $9.5 billion in operating cash flows.

Cigna Corporation (NYSE:CI), one of the best dividend stocks on our list, currently pays a quarterly dividend of $1.23 per share. The company has raised its dividends for three consecutive years. The stock’s dividend yield on October 22 came in at 1.60%.

Cigna Corporation (NYSE:CI) was a part of 74 hedge fund portfolios at the end of Q2 2023, compared with 79 in the previous quarter, according to Insider Monkey’s database. The collective worth of these stakes is over $4.06 billion.

3. Merck & Co., Inc. (NYSE:MRK)

Number of Hedge Fund Holders: 78

Merck & Co., Inc. (NYSE:MRK) is a New Jersey-based multinational pharmaceutical company that is involved in various aspects of healthcare and pharmaceutical research and development. The company offers a quarterly dividend of $0.73 per share and has a dividend yield of 2.84%, as of October 22. Its dividend growth streak currently stands at 11 years, which makes MRK one of the best dividend stocks on our list.

With a collective stake value of over $2.65 billion, 78 hedge funds in Insider Monkey’s database reported having positions in Merck & Co., Inc. (NYSE:MRK) in Q2 2023. In the previous quarter, 75 hedge funds owned stakes in the company.

2. Eli Lilly and Company (NYSE:LLY)

Number of Hedge Fund Holders: 87

Eli Lilly and Company (NYSE:LLY) is an American pharmaceutical company, headquartered in Indiana. The company offers a quarterly dividend of $1.13 per share and has been growing its dividends consistently for the past ten consecutive years. In addition to this, the company has been rewarding shareholders with uninterrupted dividends for 138 years. As of October 22, the stock has a dividend yield of 0.77%.

Of the 910 hedge funds in Insider Monkey’s database, 87 funds owned stakes in Eli Lilly and Company (NYSE:LLY) in Q2 2023, jumping from 72 in the previous quarter. The collective value of these stakes is more than $5 billion.

Baron Funds mentioned Eli Lilly and Company (NYSE:LLY) in its Q3 2023 investor letter. Here is what the firm has to say:

“Eli Lilly and Company (NYSE:LLY)and Company is a global pharmaceutical company that discovers, develops, manufactures, and sells medicines in the categories of diabetes, oncology, neuroscience, and immunology, among other areas. Stock performance was strong due to strong second quarter sales of blockbuster diabetes/obesity medicine Mounjaro and ongoing enthusiasm surrounding the company’s obesity and diabetes franchises, particularly after Novo Nordisk released its SELECT trial results. We continue to think Lilly is well positioned to grow revenue and earnings at attractive rates through the end of the decade and beyond.

We have positioned the Fund to benefit from this trend by maintaining a large position in Eli Lilly and Company, which we believe will remain a leader in the field with its drug Mounjaro and its deep pipeline of next generation GLP-1 medicines. Analysts now estimate the GLP-1 drug class could surpass $100 billion in revenue by the end of the decade and we expect Lilly to hold a meaningful share of that market.”

1. UnitedHealth Group Incorporated (NYSE:UNH)

Number of Hedge Fund Holders: 111

UnitedHealth Group Incorporated (NYSE:UNH) tops our list of the best dividend stocks from the healthcare sector. The multinational healthcare and insurance company has grown its dividends for 13 years in a row. It currently pays a quarterly dividend of $1.88 per share and has a dividend yield of 1.43%, as of October 22.

At the end of June 2023, 111 hedge funds tracked by Insider Monkey owned stakes in UnitedHealth Group Incorporated (NYSE:UNH), compared with 116 in the previous quarter. The consolidated value of these stakes is over $10 billion.

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