In this article, we discuss the 5 healthcare stock options to add to your retirement portfolio. If you wish to see more such stocks within our list, you can go directly to read the Retirement Stock Portfolio: 12 Healthcare Stocks To Consider.
5. Johnson & Johnson (NYSE:JNJ)
Number of Hedge Fund Holders: 84
Founded in 1886, Johnson & Johnson (NYSE:JNJ) is an American multinational corporation renowned for its advancements in medical devices, pharmaceuticals, and consumer packaged goods. Notably, the company’s pharmaceutical division has maintained an impressive track record of dividend growth for over 62 years. As of January 8, Johnson & Johnson (NYSE:JNJ) offers a quarterly dividend of $1.19 per share, resulting in a dividend yield of 2.95%.
On October 17, Johnson & Johnson (NYSE:JNJ) reported adjusted earnings and revenue that exceeded Wall Street’s forecasts, subsequently raising its full-year guidance due to robust sales in both its pharmaceutical and medical devices divisions. The pharmaceutical company also disclosed net income of $4.31 billion, equivalent to $1.69 per share. This figure remained consistent with the net income of $4.31 billion, or $1.62 per share, reported for the corresponding period in the previous year.
In the third quarter of 2023, the number of hedge funds tracked by Insider Monkey with holdings in Johnson & Johnson (NYSE:JNJ) declined to 84, down from 88 in the prior quarter. The collective investments by these hedge funds surpass a total value of $4.15 billion. A leading hedge fund investor in Johnson & Johnson (NYSE:JNJ) is Bridgewater Associates, managed by Ray Dalio, with a substantial stake valued at approximately $424.3 million.
4. Merck & Co., Inc. (NYSE:MRK)
Number of Hedge Fund Holders: 85
Merck & Co., Inc. (NYSE:MRK), a distinguished American multinational pharmaceutical company headquartered in Rahway, New Jersey, has roots dating back to the Merck Group, established in Germany in 1668. Originally the American arm of this venerable group, the company operates under the names Merck Sharp & Dohme or MSD outside the United States and Canada. It holds a prominent position in the pharmaceutical industry, specializing in the development of medicines, vaccines, biologic therapies, and animal health products.
Showcasing a consistent pattern of dividend growth for 11 consecutive years, the company currently provides a quarterly dividend of $0.77 per share, resulting in a dividend yield of 2.62% as of January 8.
Insider Monkey sifted through 910 hedge funds for their third-quarter 2023 investments, revealing that 85 had invested in Merck & Co., Inc. (NYSE:MRK), up from 78 in the previous quarter.
3. Eli Lilly and Company (NYSE:LLY)
Number of Hedge Fund Holders: 102
Founded in 1876, Eli Lilly and Company (NYSE:LLY) is an American pharmaceutical enterprise headquartered in Indianapolis, Indiana, with a global presence spanning 18 other countries. The company is named after its founder, Colonel Eli Lilly, a pharmaceutical chemist and a veteran of the American Civil War.
Eli Lilly and Company (NYSE:LLY) currently pays a quarterly dividend of $1.30 per share and has exhibited a steady pattern of dividend growth for the past ten consecutive years. Impressively, the company has been providing uninterrupted dividends to shareholders for 138 years. As of January 8, the stock offers a dividend yield of 0.83%.
In Q3 2023, the number of hedge funds holding stakes in Eli Lilly and Company (NYSE:LLY) increased to 102, up from 87 in the previous quarter, as per data from Insider Monkey’s database, which tracks 910 hedge funds. The combined value of these stakes surpasses $9 billion.
2. Danaher Corporation (NYSE:DHR)
Number of Hedge Fund Holders: 103
Established in 1984 by brothers Steven and Mitchell Rales, Danaher Corporation (NYSE:DHR) stands as a diversified American conglomerate with a global footprint. Headquartered in Washington, D.C., the company specializes in the design, manufacturing, and marketing of medical, industrial, and commercial products and services. Danaher Corporation (NYSE:DHR) operates through three distinct segments: Life Sciences, Diagnostics, and Environmental & Applied Solutions.
Danaher Corporation (NYSE:DHR) released its Q3 2023 earnings report on October 24, 2023, revealing a net earnings figure of $1.1 billion, equivalent to $1.51 per diluted common share. Despite encountering a 10.5% year-over-year decline in revenues, totaling $6.9 billion, the company surpassed expectations in earnings, showcasing resilience in a challenging operating environment.
As of September 2023, 103 out of the 910 hedge funds surveyed by Insider Monkey had purchased shares of the firm.
1. UnitedHealth Group Incorporated (NYSE:UNH)
Number of Hedge Fund Holders: 104
Headquartered in Minnetonka, Minnesota, UnitedHealth Group Incorporated (NYSE:UNH) stands as a leading American multinational corporation specializing in managed healthcare and insurance services, operating as a for-profit entity. The corporation is structured into four segments: UnitedHealthcare, Optum Health, Optum Insight, and Optum Rx. Recognized as one of the best healthcare stocks available, UnitedHealth Group Incorporated (NYSE:UNH) offers a quarterly dividend of $1.88 per share on January 8.
Insider Monkey’s database of 910 hedge funds reveals that 104 hedge funds reported owning stakes in UnitedHealth Group Incorporated (NYSE:UNH). The most significant stakeholder in the firm during this period was Rajiv Jain’s GQG Partners, which holds a $1.63 billion stake in the company.
Mairs & Power Growth Fund made the following comment about UnitedHealth Group Incorporated (NYSE:UNH) in its second quarter 2023 investor letter:
“Notable detractors to performance in the first half were US Bank (USB), Charles Schwab (SCHW), and UnitedHealth Group Incorporated (NYSE:UNH), which were down 22.09%, 31.65%, and 8.65%, respectively. Another detractor from relative performance was UnitedHealth Group, which was down 8.65%. However, we have a positive long-term view of the company, headquartered in Minnesota, and especially its potential when it comes to harnessing its vast amounts of patient data via AI. Additionally, its Optum unit, which provides technology and data-driven care delivery, has AI-enabled tools that can help healthcare providers drive more efficient and accurate care to patients.
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