Out of hundreds of healthcare stocks that are trading on the U.S stock market, we have selected the top 75 healthcare dividend stocks to invest in. These companies pay dividends, which shows that they have a strong financial position. In addition, all stocks are backed by hedge funds that we track at Insider Monkey.
Investing in the healthcare sector is an almost certain way to boost one’s returns. The healthcare sector includes many industries that can be suitable for investors of various risk profiles. The sector includes companies like hospital REITs, which have high dividend yields, pharmaceutical companies, medical equipment companies, biotech companies, and health insurance companies, among others. All of these industries allow investors to diversify their portfolios and seek out either companies with solid track records of profitability for safer long-term investments, or new companies that are working on innovative and promising products that have the potential to become disruptors in their market.
Currently, the prospects for the U.S healthcare sector are very optimistic. There has been an increase in medical spending that came with the aging population, as well as increasing rates of obesity and diabetes. The developments in the drug industry have led to more people being able to live longer with chronic diseases. Possible future changes in legislation are expected to benefit health insurance companies through tax cuts, even though they will also lose some customers. The government has yet to unveil its plans regarding drug pricing legislation, which was a big issue during last year’s election campaign, but the consensus on the Street is that the changes won’t have a big effect on pharmaceutical companies.
everything possible/Shutterstock.com
Investing in the healthcare sector requires some understanding of the underlying factors that affect stock prices. For example, pharmaceutical companies spend most of their money on research and development of new products, so it is important to figure out the profitability of a potential new drug, as well as the probability that the drug will prove effective in trials. In the case of insurance companies, an investor has to analyze a company’s underwriting skills (how it manages risk) and the medical cost ratio, which compares the healthcare cost with the premium revenue.
In this way, picking the most suitable healthcare companies can be a tedious process that requires a lot of research. One way to simplify this is to invest in ETFs that focus on healthcare stocks. Some healthcare-focused ETFs have been doing pretty well lately, with the iShares NASDAQ Biotechnology Index (ETF) (NASDAQ:IBB) up by 20% year-to-date, and the Health Care SPDR (ETF) (NYSEARCA:XLV) up by 16%.
Suggested article: Best Healthcare Stocks: Billionaire Seth Klarman’s Picks
However, if an investor wants to have more control over their portfolio and invest in individual stocks, a good approach to the selection process is to look at the hedge fund sentiment towards a stock. That’s what we do at Insider Monkey and our strategy has gained over 45% since February 2016 (see more details).
With this in mind, let’s take a look at the top 75 healthcare dividend stocks to invest in, based on their popularity among the hedge funds we track.
1. Allergan plc (NYSE:AGN)
Dividend: $0.70
Yield: 1.14%
Number of Hedge Funds (end Q1): 85
Value Invested (end Q1): $6.48 billion
2. Merck & Co., Inc. (NYSE:MRK)
Dividend: $0.47
Yield: 2.98%
Number of Hedge Funds (end Q1): 72
Value Invested (end Q1): $4.30 billion
pathdoc/Shutterstock.com
3. Pfizer Inc. (NYSE:PFE)
Dividend: $0.32
Yield: 3.83%
Number of Hedge Funds (end Q1): 72
Value Invested (end Q1): $4.85 billion
4. Gilead Sciences, Inc. (NASDAQ:GILD)
Dividend: $0.52
Yield: 2.95%
Number of Hedge Funds (end Q1): 71
Value Invested (end Q1): $3.78 billion
5. UnitedHealth Group Inc (NYSE:UNH)
Dividend: $0.75
Yield: 1.61%
Number of Hedge Funds (end Q1): 71
Value Invested (end Q1): $4.17 billion
Continue to the next page for the next five on our list of the top 75 healthcare dividend stocks to invest in.
6. Johnson & Johnson (NYSE:JNJ)
Dividend: $0.84
Yield: 2.53%
Number of Hedge Funds (end Q1): 70
Value Invested (end Q1): $6.38 billion
7. Bristol-Myers Squibb Co (NYSE:BMY)
Dividend: $0.39
Yield: 2.83%
Number of Hedge Funds (end Q1): 69
Value Invested (end Q1): $2.48 billion
Kalinovskiy/Shutterstock.com
8. AbbVie Inc (NYSE:ABBV)
Dividend: $0.64
Yield: 3.50%
Number of Hedge Funds (end Q1): 64
Value Invested (end Q1): $3.40 billion
9. Amgen, Inc. (NASDAQ:AMGN)
Dividend: $1.15
Yield: 2.60%
Number of Hedge Funds (end Q1): 64
Value Invested (end Q1): $2.18 billion
10. Humana Inc (NYSE:HUM)
Dividend: $0.40
Yield: 0.67%
Number of Hedge Funds (end Q1): 64
Value Invested (end Q1): $4.93 billion
11. Anthem Inc (NYSE:ANTM)
Dividend: $0.65
Yield: 1.35%
Number of Hedge Funds (end Q1): 61
Value Invested (end Q1): $4.45 billion
12. CIGNA Corporation (NYSE:CI)
Dividend: $0.04
Yield: 0.02%
Number of Hedge Funds (end Q1): 61
Value Invested (end Q1): $3.76 billion
gpointstudio/Shutterstock.com
13. Aetna Inc (NYSE:AET)
Dividend: $0.50
Yield: 1.29%
Number of Hedge Funds (end Q1): 60
Value Invested (end Q1): $4.29 billion
14. McKesson Corporation (NYSE:MCK)
Dividend: $0.28
Yield: 0.67%
Number of Hedge Funds (end Q1): 54
Value Invested (end Q1): $1.90 billion
15. Shire PLC (ADR) (NASDAQ:SHPG)
Dividend: $0.77
Yield: 0.56%
Number of Hedge Funds (end Q1): 54
Value Invested (end Q1): $3.41 billion
16. Walgreens Boots Alliance Inc (NASDAQ:WBA)
Dividend: $0.40
Yield: 2.03%
Number of Hedge Funds (end Q1): 54
Value Invested (end Q1): $4.03 billion
17. CVS Health Corp (NYSE:CVS)
Dividend: $0.50
Yield: 2.57%
Number of Hedge Funds (end Q1): 52
Value Invested (end Q1): $1.61 billion
Billion Photos/Shutterstock.com
18. Abbott Laboratories (NYSE:ABT)
Dividend: $0.26
Yield: 2.17%
Number of Hedge Funds (end Q1): 47
Value Invested (end Q1): $1.52 billion
19. Eli Lilly and Co (NYSE:LLY)
Dividend: $0.52
Yield: 2.47%
Number of Hedge Funds (end Q1): 46
Value Invested (end Q1): $2.26 billion
20. Medtronic plc. (NYSE:MDT)
Dividend: $0.46
Yield: 2.08%
Number of Hedge Funds (end Q1): 46
Value Invested (end Q1): $1.58 billion
21. Baxter International Inc (NYSE:BAX)
Dividend: $0.16
Yield: 1.03%
Number of Hedge Funds (end Q1): 45
Value Invested (end Q1): $3.87 billion
22. Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA)
Dividend: $0.34
Yield: 4.26%
Number of Hedge Funds (end Q1): 40
Value Invested (end Q1): $1.90 billion
Serhii Bobyk/Shutterstock.com
23. Universal Health Services, Inc. (NYSE:UHS)
Dividend: $0.10
Yield: 0.32%
Number of Hedge Funds (end Q1): 40
Value Invested (end Q1): $2.16 billion
24. Zoetis Inc (NYSE:ZTS)
Dividend: $0.10
Yield: 0.66%
Number of Hedge Funds (end Q1): 39
Value Invested (end Q1): $1.29 billion
25. Becton Dickinson and Co (NYSE:BDX)
Dividend: $0.73
Yield: 1.46%
Number of Hedge Funds (end Q1): 38
Value Invested (end Q1): $1.16 billion
26. C R Bard Inc (NYSE:BCR)
Dividend: $0.26
Yield: 0.32%
Number of Hedge Funds (end Q1): 37
Value Invested (end Q1): $897.08 million
27. Zimmer Biomet Holdings Inc (NYSE:ZBH)
Dividend: $0.24
Yield: 0.72%
Number of Hedge Funds (end Q1): 37
Value Invested (end Q1): $1.08 billion
Minerva Studio/Shutterstock.com
28. GlaxoSmithKline plc (ADR) (NYSE:GSK)
Dividend: $0.49
Yield: 5.83%
Number of Hedge Funds (end Q1): 32
Value Invested (end Q1): $1.43 billion
29. Cardinal Health Inc (NYSE:CAH)
Dividend: $0.46
Yield: 2.37%
Number of Hedge Funds (end Q1): 30
Value Invested (end Q1): $727.14 million
30. AstraZeneca plc (ADR) (NYSE:AZN)
Dividend: $0.95
Yield: 4.13%
Number of Hedge Funds (end Q1): 28
Value Invested (end Q1): $574.47 million
31. Quest Diagnostics Inc (NYSE:DGX)
Dividend: $0.45
Yield: 1.65%
Number of Hedge Funds (end Q1): 28
Value Invested (end Q1): $329.13 million
32. Sanofi SA (ADR) (NYSE:SNY)
Dividend: $1.64
Yield: 3.41%
Number of Hedge Funds (end Q1): 28
Value Invested (end Q1): $928.65 million
stockyimages/Shutterstock.com
33. Hill-Rom Holdings, Inc. (NYSE:HRC)
Dividend: $0.18
Yield: 0.86%
Number of Hedge Funds (end Q1): 26
Value Invested (end Q1): $371.89 million
34. Novartis AG (ADR) (NYSE:NVS)
Dividend: $2.72
Yield: 3.27%
Number of Hedge Funds (end Q1): 26
Value Invested (end Q1): $1.06 billion
35. AmerisourceBergen Corp. (NYSE:ABC)
Dividend: $0.37
Yield: 1.57%
Number of Hedge Funds (end Q1): 25
Value Invested (end Q1): $520.27 million
36. DENTSPLY SIRONA Inc (NASDAQ:XRAY)
Dividend: $0.09
Yield: 0.54%
Number of Hedge Funds (end Q1): 25
Value Invested (end Q1): $1.36 billion
37. Cooper Companies Inc (NYSE:COO)
Dividend: $0.03
Yield: 0.02%
Number of Hedge Funds (end Q1): 24
Value Invested (end Q1): $532.49 million
Billion Photos/Shutterstock.com
38. Perrigo Company plc (NYSE:PRGO)
Dividend: $0.14
Yield: 0.87%
Number of Hedge Funds (end Q1): 24
Value Invested (end Q1): $990.32 million
39. Stryker Corporation (NYSE:SYK)
Dividend: $0.43
Yield: 1.17%
Number of Hedge Funds (end Q1): 23
Value Invested (end Q1): $524.33 million
40. Patterson Companies, Inc. (NASDAQ:PDCO)
Dividend: $0.26
Yield: 2.40%
Number of Hedge Funds (end Q1): 21
Value Invested (end Q1): $155.29 million
41. Teleflex Incorporated (NYSE:TFX)
Dividend: $0.34
Yield: 0.64%
Number of Hedge Funds (end Q1): 21
Value Invested (end Q1): $675.44 million
42. Owens & Minor, Inc. (NYSE:OMI)
Dividend: $0.26
Yield: 3.23%
Number of Hedge Funds (end Q1): 20
Value Invested (end Q1): $184.86 million
Ocskay Mark/Shutterstock.com
43. Phibro Animal Health Corp (NASDAQ:PAHC)
Dividend: $0.10
Yield: 1.06%
Number of Hedge Funds (end Q1): 20
Value Invested (end Q1): $21.00 million
44. Steris PLC (NYSE:STE)
Dividend: $0.28
Yield: 1.36%
Number of Hedge Funds (end Q1): 20
Value Invested (end Q1): $227.42 million
45. ResMed Inc. (NYSE:RMD)
Dividend: $0.33
Yield: 1.70%
Number of Hedge Funds (end Q1): 19
Value Invested (end Q1): $79.24 million
46. HealthSouth Corp (NYSE:HLS)
Dividend: $0.24
Yield: 2.09%
Number of Hedge Funds (end Q1): 18
Value Invested (end Q1): $161.24 million
47. CONMED Corporation (NASDAQ:CNMD)
Dividend: $0.20
Yield: 1.58%
Number of Hedge Funds (end Q1): 17
Value Invested (end Q1): $193.29 million
alexkich/Shutterstock.com
48. Luminex Corporation (NASDAQ:LMNX)
Dividend: $0.06
Yield: 1.16%
Number of Hedge Funds (end Q1): 17
Value Invested (end Q1): $107.17 million
49. Kindred Healthcare, Inc. (NYSE:KND)
Dividend: $0.12
Yield: 4.17%
Number of Hedge Funds (end Q1): 16
Value Invested (end Q1): $62.95 million
50. MSA Safety Incorporated (NYSE:MSA)
Dividend: $0.35
Yield: 1.75%
Number of Hedge Funds (end Q1): 16
Value Invested (end Q1): $49.51 million
51. Nu Skin Enterprises, Inc. (NYSE:NUS)
Dividend: $0.36
Yield: 2.28%
Number of Hedge Funds (end Q1): 16
Value Invested (end Q1): $145.22 million
52. Novo Nordisk A/S (ADR) (NYSE:NVO)
Dividend: $0.67
Yield: 3.12%
Number of Hedge Funds (end Q1): 15
Value Invested (end Q1): $1.13 billion
Sergey Nivens/Shutterstock.com
53. Chemed Corporation (NYSE:CHE)
Dividend: $0.26
Yield: 0.50%
Number of Hedge Funds (end Q1): 14
Value Invested (end Q1): $253.31 million
54. Meridian Bioscience, Inc. (NASDAQ:VIVO)
Dividend: $0.12
Yield: 3.29%
Number of Hedge Funds (end Q1): 14
Value Invested (end Q1): $44.93 million
55. Smith & Nephew plc (ADR) (NYSE:SNN)
Dividend: $0.37
Yield: 2.84%
Number of Hedge Funds (end Q1): 13
Value Invested (end Q1): $324.67 million
56. BIO-TECHNE Corp (NASDAQ:TECH)
Dividend: $0.32
Yield: 1.11%
Number of Hedge Funds (end Q1): 13
Value Invested (end Q1): $383.64 million
57. Invacare Corporation (NYSE:IVC)
Dividend: $0.01
Yield: 0.36%
Number of Hedge Funds (end Q1): 12
Value Invested (end Q1): $72.82 million
adriaticfoto/Shutterstock.com
58. Cantel Medical Corp. (NYSE:CMD)
Dividend: $0.07
Yield: 0.18%
Number of Hedge Funds (end Q1): 10
Value Invested (end Q1): $137.64 million
59. The Ensign Group, Inc. (NASDAQ:ENSG)
Dividend: $0.04
Yield: 0.79%
Number of Hedge Funds (end Q1): 10
Value Invested (end Q1): $22.93 million
60. Dr.Reddy’s Laboratories Ltd (ADR) (NYSE:RDY)
Dividend: $0.31
Yield: 0.74
Number of Hedge Funds (end Q1): 10
Value Invested (end Q1): $333.64 million
61. Petmed Express Inc (NASDAQ:PETS)
Dividend: $0.20
Yield: 2.01%
Number of Hedge Funds (end Q1): 9
Value Invested (end Q1): $52.60 million
62. Grifols SA, Barcelona (NASDAQ:GRFS)
Dividend: $0.16
Yield: 1.33%
Number of Hedge Funds (end Q1): 8
Value Invested (end Q1): $64.78 million
Stokkete/Shutterstock.com
63. National HealthCare Corporation (NYSEMKT:NHC)
Dividend: $0.48
Yield: 2.81%
Number of Hedge Funds (end Q1): 8
Value Invested (end Q1): $34.41 million
64. U.S. Physical Therapy, Inc. (NYSE:USPH)
Dividend: $0.20
Yield: 1.29%
Number of Hedge Funds (end Q1): 8
Value Invested (end Q1): $65.84 million
65. Aceto Corporation (NASDAQ:ACET)
Dividend: $0.06
Yield: 1.68%
Number of Hedge Funds (end Q1): 7
Value Invested (end Q1): $13.55 million
66. Fresenius Medical Care AG & Co. (ADR) (NYSE:FMS)
Dividend: $0.53
Yield: 1.08%
Number of Hedge Funds (end Q1): 7
Value Invested (end Q1): $26.11 million
67. Atrion Corporation (NASDAQ:ATRI)
Dividend: $1.05
Yield: 0.65%
Number of Hedge Funds (end Q1): 6
Value Invested (end Q1): $40.98 million
Romaset/Shutterstock.com
68. Digirad Corporation (NASDAQ:DRAD)
Dividend: $0.05
Yield: 5.00%
Number of Hedge Funds (end Q1): 6
Value Invested (end Q1): $11.13 million
69. LeMaitre Vascular Inc (NASDAQ:LMAT)
Dividend: $0.05
Yield: 0.75%
Number of Hedge Funds (end Q1): 6
Value Invested (end Q1): $18.30 million
70. Psychemedics Corp. (NASDAQ:PMD)
Dividend: $0.15
Yield: 2.31%
Number of Hedge Funds (end Q1): 6
Value Invested (end Q1): $12.21 million
71. Healthcare Services Group, Inc. (NASDAQ:HCSG)
Dividend: $0.19
Yield: 1.43%
Number of Hedge Funds (end Q1): 5
Value Invested (end Q1): $15.21 million
72. Luxottica Group SpA (ADR) (NYSE:LUX)
Dividend: $0.97
Yield: 1.63%
Number of Hedge Funds (end Q1): 5
Value Invested (end Q1): $50.28 million
Africa Studio/Shutterstock.com
73. Nature’s Sunshine Prod. (NASDAQ:NATR)
Dividend: $0.10
Yield: 3.16%
Number of Hedge Funds (end Q1): 5
Value Invested (end Q1): $69.76 million
74. National Research Corp (NASDAQ:NRCIA)
Dividend: $0.10
Yield: 1.42%
Number of Hedge Funds (end Q1): 4
Value Invested (end Q1): $18.07 million
75. Utah Medical Products, Inc. (NASDAQ:UTMD)
Dividend: $0.26
Yield: 1.47%
Number of Hedge Funds (end Q1): 4
Value Invested (end Q1): $15.27 million
That wraps up our list of the top 75 healthcare dividend stocks to invest in.
Disclosure: None
