5 Healthcare Stocks for an Income Portfolio

1. Anthem, Inc. (NYSE:ANTM)

Number of Hedge Fund Holders: 63

Dividend Yield as of April 22: 1.02%

Anthem, Inc. (NYSE:ANTM) operates as a health benefits company in the United States, offering managed healthcare and insurance services to individuals, Medicaid, and Medicare markets. Anthem, Inc. (NYSE:ANTM) has an 11-year history of consistently raising its dividends. 

Anthem, Inc. (NYSE:ANTM) declared on April 20 a $1.28 per share quarterly dividend, in line with previous. The dividend is payable on June 24, to shareholders of the company as of June 10. On April 22, Anthem, Inc. (NYSE:ANTM)’s dividend yield came in at 1.02%. 

Anthem, Inc. (NYSE:ANTM) reported its Q1 2022 financial results on April 20, announcing an EPS of $8.25, exceeding market consensus estimates by $0.42. Revenue over the period jumped 18.03% year-over-year to $37.90 billion, outperforming analysts’ forecasts by $582.73 million. 

On April 22, Wells Fargo analyst Stephen Baxter reiterated an Overweight rating on Anthem, Inc. (NYSE:ANTM) and raised the firm’s price target on the stock to $586 following the Q1 results. The analyst observed that the “underlying earnings quality was high” and Anthem, Inc. (NYSE:ANTM) also raised its FY22 adjusted EPS guidance. He continues to see business momentum for Anthem, Inc. (NYSE:ANTM) as “strong across both its health plan and services businesses”.

Among the hedge funds tracked by Insider Monkey, 63 funds held stakes worth $5.6 billion in Anthem, Inc. (NYSE:ANTM) at the end of December 2021, up from 59 the previous quarter worth $4.5 billion. Boykin Curry’s Eagle Capital Management is the leading position holder in the company, with 2.45 million shares valued at $1.13 billion. 

Here is what ClearBridge Investments Large Cap Value Strategy has to say about Anthem, Inc. (NYSE:ANTM) in its Q4 2021 investor letter:

“The quarter also saw strong showings from Anthem; has been operating well and is a key player in the evolution of health care insurance and delivery, providing more integrated and cost-effective solutions and receiving a tailwind from an aging population. The company tends to be volatile based on changes in medical loss ratios (MLR), though we view this volatility as a short term for business models that are able to reprice policies relatively quickly. We added significantly to the position during the year.”

You can also take a look at 10 Monthly Dividend Stocks to Buy in April and 10 Oil Tanker Stocks That Pay Dividends. 

Follow Insider Monkey on Twitter