In this article, we discuss the 5 healthcare dividend stocks with over 3% yield. If you want our detailed analysis of these stocks, go directly to the 10 Healthcare Dividend Stocks with Over 3% Yield.
5. Cardinal Health, Inc. (NYSE:CAH)
Dividend Yield as of December 13: 4.05%
Number of Hedge Fund Holders: 36
Cardinal Health, Inc. (NYSE:CAH) is an American multinational healthcare services company that is involved in the development and distribution of pharmaceuticals and laboratory products, as well as providing performance and data solutions for healthcare facilities. With a forward yield of 4.05%, Cardinal Health, Inc. (NYSE:CAH) is one of the best healthcare dividend stocks.
On November 9, Cardinal Health, Inc. (NYSE:CAH) published earnings for the third quarter, announcing earnings per share of $1.29, missing estimates by $0.06. The $43.97 billion revenue for the period was up 12.55% year-over-year, exceeding estimates by $2.14 billion.
Deutsche Bank analyst George Hill raised the price target on Cardinal Health, Inc. (NYSE:CAH) on November 12 to $59 from $51 and kept a Hold rating on the shares after the “modest beat” in Q3.
Of the 36 hedge funds that were bullish on Cardinal Health, Inc. (NYSE:CAH) according to the third quarter database of Insider Monkey, Pzena Investment Management is the leading stakeholder of the company, holding 2.95 million shares worth $146.2 million.
4. AbbVie Inc. (NYSE:ABBV)
Dividend Yield as of December 13: 4.46%
Number of Hedge Fund Holders: 81
AbbVie Inc. (NYSE:ABBV) made it to our list of the best healthcare dividend stocks, offering 49 years of consistent dividend growth, with a forward yield of 4.46% as of December 13. AbbVie Inc. (NYSE:ABBV) is one of the most popular healthcare stocks among the hedge funds, with 81 funds holding positions in the company in Q3, with stakes worth $4.14 billion.
After its corporate spin off from Abbott Laboratories (NYSE:ABT) in 2013, AbbVie Inc. (NYSE:ABBV) has been a market leader in the pharmaceutical sector, offering medical products and clinical trials focused on immunology, oncology, neuroscience, eye care, and virology.
Publishing its third quarter results on October 29, AbbVie Inc. (NYSE:ABBV) posted an EPS of $3.33, beating estimates by $0.11. The quarterly revenue jumped 11.33% from the prior-year quarter to $14.34 billion, surpassing estimates by $43.28 million.
On December 8, Mohit Bansal from Wells Fargo initiated coverage of AbbVie Inc. (NYSE:ABBV) with an Overweight rating and a $165 price target. The analyst thinks Humira, a signature AbbVie Inc. (NYSE:ABBV) product, “overshadows the rest of the business”, but the business outside of Humira is growing at 10% revenue and 20% EPS CAGR.
Berkshire Hathaway is the largest AbbVie Inc. (NYSE:ABBV) stakeholder from the third quarter, with 14.3 million shares worth $1.55 billion.
3. GlaxoSmithKline plc (NYSE:GSK)
Dividend Yield as of December 13: 4.98%
Number of Hedge Fund Holders: 31
GlaxoSmithKline plc (NYSE:GSK) is a UK-based multinational company specializing in prescription medicines, vaccines, and consumer healthcare products. GlaxoSmithKline plc (NYSE:GSK) reported on October 27 its Q3 results. EPS in the quarter equaled $1.01, beating estimates by $0.19. The revenue increased 11.10% year-over-year to $12.47 billion, exceeding estimates by $529.13 million.
Berenberg analyst Luisa Hector on November 24 raised the price target on GlaxoSmithKline plc (NYSE:GSK) to £1,630 from £1,540 and kept a Buy rating on the shares.
Arrowstreet Capital is one of the leading GlaxoSmithKline plc (NYSE:GSK) stakeholders, increasing its stake in the company by 108% in the third quarter, holding 3.72 million shares worth $142.3 million. Overall, 31 hedge funds monitored by Insider Monkey reported owning stakes in GlaxoSmithKline plc (NYSE:GSK) in Q3 2021, up from 28 funds in the preceding quarter.
With a forward yield of 4.98%, GlaxoSmithKline plc (NYSE:GSK) is one of the best healthcare dividend stocks to invest in.
2. Sinopharm Group Co., Ltd. (OTC:SHTDY)
Dividend Yield as of December 13: 5.06%
Number of Hedge Fund Holders: N/A
Sinopharm Group Co., Ltd. (OTC:SHTDY) is a Chinese state-owned pharmaceutical enterprise that is known for creating vaccines, with its COVID-19 vaccine successfully administered in several countries including Argentina, Bahrain, Egypt, Morocco, Pakistan, Peru, and the United Arab Emirates, after the completion of Phase III trials.
The World Health Organization is in talks with Sinopharm Group Co., Ltd. (OTC:SHTDY) and other vaccine manufacturers from China and India to share their vaccine patents and technologies for mass production and vaccine rollout in underdeveloped regions to combat the Omicron variant. Sinopharm Group Co., Ltd. (OTC:SHTDY) is also in talks with other countries to share vaccine patents in commercial deals.
With a forward yield of 5.06%, Sinopharm Group Co., Ltd. (OTC:SHTDY) is one of the best healthcare dividend stocks to make it to our list.
1. Takeda Pharmaceutical Company Limited (NYSE:TAK)
Dividend Yield as of December 13: 5.95%
Number of Hedge Fund Holders: 15
Takeda Pharmaceutical Company Limited (NYSE:TAK), with a dividend yield of 5.95%, ranks first on our list of the best healthcare dividend stocks. Takeda Pharmaceutical Company Limited (NYSE:TAK) is a multinational Japanese pharmaceutical company. As the largest pharmaceutical company in Asia, Takeda Pharmaceutical Company Limited (NYSE:TAK) specializes in metabolic disorders, gastroenterology, neurology, inflammation, and oncology.
Jefferies analyst Stephen Barker on October 29 upgraded Takeda Pharmaceutical Company Limited (NYSE:TAK) to Buy from Hold with an unchanged price target of 4,000 yen after the company reported “respectable” FQ2 results.
In the third quarter, 15 hedge funds were long Takeda Pharmaceutical Company Limited (NYSE:TAK), with total stakes worth $443.6 million. Cathie Wood’s ARK Investment Management is the largest company stakeholder, holding a $221.1 million position in Takeda Pharmaceutical Company Limited (NYSE:TAK).
You can also take a look at Billionaire Cliff Asness Portfolio: 10 Stocks Under $20 and 10 Best Growth Stocks for 2022.
