In this article, we will be looking at the 5 healthcare dividend stocks that hedge funds are buying. To read our detailed analysis of the healthcare sector, you can go directly to see the 10 Healthcare Dividend Stocks Hedge Funds are Buying.
5. AbbVie Inc. (NYSE: ABBV)
Number of Hedge Fund Holders: 72
Dividend Yield: 4.5%
AbbVie Inc. (NYSE: ABBV) is a provider of pharmaceuticals to consumers internationally, and ranks 5th on our list of healthcare dividend stocks that hedge funds are buying. The company’s products target a range of medical and health issues, and it is based in North Chicago, Illinois.
Vamil Divan, an analyst at Mizuho, this August raised his price target on shares of AbbVie Inc. (NYSE: ABBV) from $128 to $131. The analyst also reiterated a Buy rating on the stock.
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.
4. Merck & Company, Inc. (NYSE: MRK)
Number of Hedge Fund Holders: 79
Dividend Yield: 3.4%
Merck & Company, Inc. (NYSE: MRK), a pharmaceutical company, is based in New Jersey and operates in the US and Canada. The company ranks 4th on our list of healthcare dividend stocks hedge funds are buying.
Mizuho analyst Mara Goldstein reiterated a Buy rating on shares of Merck & Company, Inc. (NYSE: MRK) this July, alongside a $100 price target.
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. Johnson & Johnson (NYSE: JNJ)
Number of Hedge Fund Holders: 81
Dividend Yield: 2.4%
Johnson & Johnson (NYSE: JNJ), a medical device company and COVID-19 vaccine developer and distributor, ranks 3rd on our list of healthcare dividend stocks that hedge funds are buying. The company is based in New Jersey and focuses on the development of medical devices, pharmaceuticals, and consumer packaged goods.
An Overweight rating was placed on shares of Johnson & Johnson (NYSE: JNJ) by Cantor Fitzgerald this July, alongside a $200 price target.
In the second quarter of 2021, Johnson & Johnson (NYSE: JNJ) had an EPS of $2.48, beating estimates by $0.20. The company’s revenue was $23.31 billion, up 27.14% year over year and beating estimates by $802.29 million. Johnson & Johnson (NYSE: JNJ) has gained 7.35% in the past 6 months and 13.64% year to date.
By the end of the first quarter of 2021, 81 hedge funds out of the 866 tracked by Insider Monkey held stakes in Johnson & Johnson (NYSE: JNJ) worth roughly $7 billion. This is compared to 81 hedge funds in the previous quarter with a total stake value of approximately $6 billion.
2. Bristol-Myers Squibb Company (NYSE: BMY)
Number of Hedge Fund Holders: 81
Dividend Yield: 2.9%
Bristol-Myers Squibb Company (NYSE: BMY), a New York-based biopharmaceuticals company, is next on our list of healthcare dividend stocks that hedge funds are buying. The company ranks 2nd on our list and is one of the largest pharmaceutical companies in the world, being consistently ranked on the Fortune 500 list.
This July, Robyn Karnauskas, an analyst at Truist, took over coverage of shares of Bristol-Myers Squibb Company (NYSE: BMY). The analyst has a Buy rating on the shares alongside a $74 price target.
In the second quarter of 2021, Bristol-Myers Squibb Company (NYSE: BMY) had an EPS of $1.93, beating estimates by $0.03. The company’s revenue was $11.70 billion, up 15.54% year over year and beating estimates by $474.30 million. Bristol-Myers Squibb Company (NYSE: BMY) has gained 13.35% in the past 6 months and 11.89% year to date.
By the end of the first quarter of 2021, 81 hedge funds out of the 866 tracked by Insider Monkey held stakes in Bristol-Myers Squibb Company (NYSE: BMY) worth roughly $5.04 billion. This is compared to 131 hedge funds in the previous quarter with a total stake value of approximately $6.1 billion.
1. UnitedHealth Group Incorporated (NYSE: UNH)
Number of Hedge Fund Holders: 89
Dividend Yield: 1.4%
UnitedHealth Group Incorporated (NYSE: UNH), a diversified healthcare company based in America, ranks 1st on our list of healthcare dividend stocks that hedge funds are buying. The company operates through its UnitedHealthcare, OptumHealth, OptumInsight, and OptumRx segments.
This July, Stephens raised its price target on shares of UnitedHealth Group Incorporated (NYSE: UNH) from $440 to $460. The firm’s analyst Scott Fidel lead the increase in price target, while also reiterating an Overweight rating on UnitedHealth Group Incorporated (NYSE: UNH) shares.
In the second quarter of 2021, UnitedHealth Group Incorporated (NYSE: UNH) had an EPS of $4.70, beating estimates by $0.24. The company’s revenue was $71.32 billion, up 14.78% year over year and beating estimates by $1.77 billion. UnitedHealth Group Incorporated (NYSE: UNH) has gained 27.64% in the past 6 months and 19.37% year to date.
By the end of the first quarter of 2021, 89 hedge funds out of the 866 tracked by Insider Monkey held stakes in UnitedHealth Group Incorporated (NYSE: UNH) worth roughly $12.1 billion. This is compared to 91 hedge funds in the previous quarter with a total stake value of approximately $10.1 billion.
ClearBridge Investments, an investment management firm, mentioned UnitedHealth Group Incorporated (NYSE: UNH) in its second-quarter 2021 investor letter. Here’s what they said:
“A good way to conceptualize how we think about portfolio construction is to picture a pyramid. At the bottom of the pyramid are the durable compounding growth companies that form the strong foundation, resilience and consistency for the Strategy. We think these companies should comprise just under half of portfolio assets and feature annual revenue growth rates ranging from two times GDP up to 20% as well as healthy free cash flow generation.
UnitedHealth Group, a name we have owned in the Strategy since 1992, is a good example of a long-term compounder, having grown its revenue base from approximately $600 million to north of $260 billion over that time frame. It remains constantly focused on investing in new growth drivers such as telemedicine and health care analytics. Broadcom and Comcast have delivered similar long-term appreciation through a combination of organic growth, capital deployment into new and adjacent opportunities through merger and acquisition activity as well as returning capital to shareholders through buybacks and dividends.”
You can also take a look at Top 10 Large-Cap Healthcare Stocks to Buy Now and 15 Biggest Money Transfer Companies In The World.
