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Cracking The Best Healthcare Dividend Stock Secret

This Weekend my eyes and thoughts curved around the Healthcare sector. 

I read several interesting articles from the sector, mostly about the biotech’s and new Hepatitis C drugs from Gilead, Sovaldi and Harvoni.

Those are very expensive drugs with potential to kill the current medical systems but they also generate tons of cash for their corporate.

I also noticed that the Healthcare sector grows at a much faster pace than the economy does, with 10+ percent. How can you benefit from this trend? I don't know. Prices are high, even on free cash flow basis.

Second, the old synthetic drug cash cow system from Pfizer doesn't work anymore. PFE is losing revenues. Even Teva, a generic drug manufacturer, struggles.

In order to get an overview about modest valuated growth stocks from the Healthcare sector, I've created a screen for large capitalized sector members with the following main criteria:

- EPS growth next five years: over 5 percent
- Sales growth past five years: over 5 percent
- Forward P/E under 20
- Positive Dividend

14 attractive healthcare growth stocks remain. It's a very selective list with focus on sales and earnings growth. You can find the full results attached. 

You may also interested in my older articles about healthcare dividend stocks.

Below are also five of my favorites. Which stocks do you like? Please let me know.


AbbVie -- Yield: 3.24%


AbbVie (NYSE:ABBV) works within the Drug Manufacturers - Major industry, a part of the Healthcare sector, and has a market capitalization of $96.43 billion.

The Healthcare company employs 26,000 people, generates revenue of $19,960.00 million and has a net income of $1,774.00 million. Sales grew in average 7.00% per year over the past 5 years.

AbbVie’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4,549.00 million. The EBITDA margin is 22.79 percent (the operating margin is 17.09% and the net profit margin 8.89%).

Financials: The total debt represents 54.49 percent of AbbVie’s assets and the total debt in relation to the equity amounts to 861.71%. Here are some return ratios:

Return on Assets: 6.20%
Return on Equity: 37.20%
Return on Investment: 10.50%
Quick Ratio: 2.50
Current Ratio: 2.60

Twelve-trailing-months earnings per share reached a value of $1.10. Last fiscal year, AbbVie paid $1.66 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 55.00, the P/S ratio is 4.83 and the P/B ratio is finally 20.79. The dividend yield amounts to 3.24%.

P/E: 55.00
Forward P/E: 12.10
PEG: 3.57
P/S: 4.83
P/B: 20.79
P/Cash: 12.47
P/Free Cashflow: -

Earnings Growth: AbbVie’s expected earnings growth for the next year amounts to 13.71% while earnings growth for the next five years is estimated at 15.40%.

EPS this year: -57.20%
EPS next year: 13.71%
EPS next 5 years: 15.40%

EPS past 5 years: -17.80%
Sales past 5 years: 7.00%

Ownership: Insiders of the company own 0.08% of the outstanding shares. The position changed -0.80% over the recent six months.

The second important group of the company is institutional. Those investors own 72.80% of the company’s shares. The value moved 0.27% over the past half year.

Also important for the stock price are short sellers of the company. The amount of short-selling transactions in relation to the total outstanding and floating shares amounted to 0.96%.

In relation the latest trading volume, the ratio was 1.60. High values show that a huge amount of shares being shorted. Investors hope for declining prices and showing a kind of sentiment of the stock.

Technical: The AbbVie stock price changed -6.85% year-to-date.

Shares of the Drug Manufacturers - Major company are -13.85% away from its 52-Week High and 35.98% above the 52-Week Low.

The Relative-Strength-Indicator (RSI) has a value of 49.49. Values over 70 indicating an overbought territory while results below 30 showing that the company could be oversold.

Let’s look at the simple moving averages 200, 50 and 20 of AbbVie. The stock price is 4.01% away from its 200-Day Moving Average. The distance to the 50-Day Moving Average amounts to -3.19%. Short-term, it’s a value of 2.32%.

Volatility: 1.59Billion shares are outstanding of which 1.57B float. The average daily stock trading volume of the recent 3 months amounted to 9.49Million shares. On the last trading day, 8,631,033 were sold which resulted in a relative volume of 0.91. Higher values show an increasing short-term volatility.

Volatility Week --- 1.49%
Volatility Month --- 2.50%
Average True Range (ATR) --- 1.47
Beta --- -

Performance:

Performance Week --- -1.31%
Performance Month --- -2.18%
Perormance Quarter --- -10.44%
Performance Half Year --- 10.24%
Performance Year --- 22.62%


Long-Term Stock Price Chart Of AbbVie (ABBV)
Long-Term Stock Price Chart Of AbbVie (ABBV)
Long-Term Dividend Payment History of AbbVie (ABBV)
Long-Term Dividend Payment History of AbbVie (ABBV)
Long-Term Dividend Yield History of AbbVie (ABBV)
Long-Term Dividend Yield History of AbbVie (ABBV)





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Amgen -- Yield: 2.00%


Amgen (NASDAQ:AMGN) works within the Biotechnology industry, a part of the Healthcare sector, and has a market capitalization of $119.69 billion.

The Healthcare company employs 17,900 people, generates revenue of $20,063.00 million and has a net income of $5,158.00 million. Sales grew in average 6.50% per year over the past 5 years.

Amgen’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $8,660.00 million. The EBITDA margin is 43.16 percent (the operating margin is 30.86% and the net profit margin 25.71%).

Financials: The total debt represents 44.51 percent of Amgen’s assets and the total debt in relation to the equity amounts to 119.15%. Here are some return ratios:

Return on Assets: 7.50%
Return on Equity: 21.00%
Return on Investment: 10.20%
Quick Ratio: 4.60
Current Ratio: 5.00

Twelve-trailing-months earnings per share reached a value of $6.70. Last fiscal year, Amgen paid $2.44 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 23.54, the P/S ratio is 5.97 and the P/B ratio is finally 4.66. The dividend yield amounts to 2.00%.

P/E: 23.54
Forward P/E: 15.03
PEG: 2.12
P/S: 5.97
P/B: 4.66
P/Cash: 4.43
P/Free Cashflow: -

Earnings Growth: Amgen’s expected earnings growth for the next year amounts to 13.01% while earnings growth for the next five years is estimated at 11.10%.

EPS this year: 0.90%
EPS next year: 13.01%
EPS next 5 years: 11.10%

EPS past 5 years: 8.20%
Sales past 5 years: 6.50%

Ownership: Insiders of the company own 0.10% of the outstanding shares. The position changed -2.82% over the recent six months.

The second important group of the company is institutional. Those investors own 82.50% of the company’s shares. The value moved -0.64% over the past half year.

Also important for the stock price are short sellers of the company. The amount of short-selling transactions in relation to the total outstanding and floating shares amounted to 0.93%.

In relation the latest trading volume, the ratio was 1.97. High values show that a huge amount of shares being shorted. Investors hope for declining prices and showing a kind of sentiment of the stock.

Technical: The Amgen stock price changed -0.46% year-to-date. Compared to the overall market, the beta ratio was 0.58.

Shares of the Biotechnology company are -8.43% away from its 52-Week High and 48.62% above the 52-Week Low.

The Relative-Strength-Indicator (RSI) has a value of 54.10. Values over 70 indicating an overbought territory while results below 30 showing that the company could be oversold.

Let’s look at the simple moving averages 200, 50 and 20 of Amgen. The stock price is 12.84% away from its 200-Day Moving Average. The distance to the 50-Day Moving Average amounts to 0.66%. Short-term, it’s a value of 2.35%.

Volatility: 758.86Million shares are outstanding of which 757.97M float. The average daily stock trading volume of the recent 3 months amounted to 3.57Million shares. On the last trading day, 2,461,646 were sold which resulted in a relative volume of 0.69. Higher values show an increasing short-term volatility.

Volatility Week --- 1.63%
Volatility Month --- 2.15%
Average True Range (ATR) --- 3.19
Beta --- 0.58

Performance:

Performance Week --- 0.04%
Performance Month --- 2.53%
Perormance Quarter --- -2.27%
Performance Half Year --- 15.48%
Performance Year --- 30.65%


Long-Term Stock Price Chart Of Amgen (AMGN)
Long-Term Stock Price Chart Of Amgen (AMGN)
Long-Term Dividend Payment History of Amgen (AMGN)
Long-Term Dividend Payment History of Amgen (AMGN)
Long-Term Dividend Yield History of Amgen (AMGN)
Long-Term Dividend Yield History of Amgen (AMGN)


UnitedHealth Group -- Yield: 1.32%



UnitedHealth Group (NYSE:UNH) works within the Health Care Plans industry, a part of the Healthcare sector, and has a market capitalization of $108.37 billion.

The Healthcare company employs 170,000 people, generates revenue of $130,474.00 million and has a net income of $5,619.00 million. Sales grew in average 8.40% per year over the past 5 years.

UnitedHealth Group’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $11,330.00 million. The EBITDA margin is 8.68 percent (the operating margin is 7.87% and the net profit margin 4.31%).

Financials: The total debt represents 20.15 percent of UnitedHealth Group’s assets and the total debt in relation to the equity amounts to 53.63%. Here are some return ratios:

Return on Assets: 6.60%
Return on Equity: 17.20%
Return on Investment: 12.50%
Quick Ratio: 0.70
Current Ratio: 0.70

Twelve-trailing-months earnings per share reached a value of $5.66. Last fiscal year, UnitedHealth Group paid $1.40 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 20.08, the P/S ratio is 0.83 and the P/B ratio is finally 3.55. The dividend yield amounts to 1.32%.

P/E: 20.08
Forward P/E: 16.27
PEG: 2.08
P/S: 0.83
P/B: 3.55
P/Cash: 14.46
P/Free Cashflow: 20.99

Earnings Growth: UnitedHealth Group’s expected earnings growth for the next year amounts to 12.70% while earnings growth for the next five years is estimated at 9.67%.

EPS this year: 3.60%
EPS next year: 12.70%
EPS next 5 years: 9.67%

EPS past 5 years: 12.00%
Sales past 5 years: 8.40%

Ownership: Insiders of the company own 0.80% of the outstanding shares. The position changed -2.99% over the recent six months.

The second important group of the company is institutional. Those investors own 92.00% of the company’s shares. The value moved -1.07% over the past half year.

Also important for the stock price are short sellers of the company. The amount of short-selling transactions in relation to the total outstanding and floating shares amounted to 1.44%.

In relation the latest trading volume, the ratio was 3.21. High values show that a huge amount of shares being shorted. Investors hope for declining prices and showing a kind of sentiment of the stock.

Technical: The UnitedHealth Group stock price changed 12.40% year-to-date. Compared to the overall market, the beta ratio was 0.57.

Shares of the Health Care Plans company are -2.53% away from its 52-Week High and 56.35% above the 52-Week Low.

The Relative-Strength-Indicator (RSI) has a value of 61.93. Values over 70 indicating an overbought territory while results below 30 showing that the company could be oversold.

Let’s look at the simple moving averages 200, 50 and 20 of UnitedHealth Group. The stock price is 24.93% away from its 200-Day Moving Average. The distance to the 50-Day Moving Average amounts to 6.92%. Short-term, it’s a value of 3.23%.

Volatility: 953.69Million shares are outstanding of which 938.19M float. The average daily stock trading volume of the recent 3 months amounted to 4.20Million shares. On the last trading day, 4,005,515 were sold which resulted in a relative volume of 0.95. Higher values show an increasing short-term volatility.

Volatility Week --- 1.60%
Volatility Month --- 1.73%
Average True Range (ATR) --- 2.01
Beta --- 0.57

Performance:

Performance Week --- 0.90%
Performance Month --- 4.77%
Perormance Quarter --- 16.51%
Performance Half Year --- 32.61%
Performance Year --- 51.93%


Long-Term Stock Price Chart Of UnitedHealth Group (UNH)
Long-Term Stock Price Chart Of UnitedHealth Group (UNH)
Long-Term Dividend Payment History of UnitedHealth Group (UNH)
Long-Term Dividend Payment History of UnitedHealth Group (UNH)
Long-Term Dividend Yield History of UnitedHealth Group (UNH)
Long-Term Dividend Yield History of UnitedHealth Group (UNH)


Aetna -- Yield: 1.00%



Aetna (NYSE:AET) works within the Health Care Plans industry, a part of the Healthcare sector, and has a market capitalization of $34.82 billion.

The Healthcare company employs 48,600 people, generates revenue of $58,003.20 million and has a net income of $2,045.20 million. Sales grew in average 10.80% per year over the past 5 years.

Aetna’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4,253.80 million. The EBITDA margin is 7.33 percent (the operating margin is 6.60% and the net profit margin 3.53%).

Financials: The total debt represents percent of Aetna’s assets and the total debt in relation to the equity amounts to %. Here are some return ratios:

Return on Assets: 3.90%
Return on Equity: 14.10%
Return on Investment: 10.70%
Quick Ratio: -
Current Ratio: -

Twelve-trailing-months earnings per share reached a value of $5.67. Last fiscal year, Aetna paid $0.90 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 17.56, the P/S ratio is 0.60 and the P/B ratio is finally 2.34. The dividend yield amounts to 1.00%.

P/E: 17.56
Forward P/E: 12.43
PEG: 1.84
P/S: 0.60
P/B: 2.34
P/Cash: 20.40
P/Free Cashflow: -

Earnings Growth: Aetna’s expected earnings growth for the next year amounts to 11.53% while earnings growth for the next five years is estimated at 9.52%.

EPS this year: 6.60%
EPS next year: 11.53%
EPS next 5 years: 9.52%

EPS past 5 years: 14.90%
Sales past 5 years: 10.80%

Ownership: Insiders of the company own 0.50% of the outstanding shares. The position changed -0.30% over the recent six months.

The second important group of the company is institutional. Those investors own 89.60% of the company’s shares. The value moved -2.16% over the past half year.

Also important for the stock price are short sellers of the company. The amount of short-selling transactions in relation to the total outstanding and floating shares amounted to 1.03%.

In relation the latest trading volume, the ratio was 1.67. High values show that a huge amount of shares being shorted. Investors hope for declining prices and showing a kind of sentiment of the stock.

Technical: The Aetna stock price changed 12.38% year-to-date. Compared to the overall market, the beta ratio was 0.96.

Shares of the Health Care Plans company are -2.38% away from its 52-Week High and 50.18% above the 52-Week Low.

The Relative-Strength-Indicator (RSI) has a value of 63.92. Values over 70 indicating an overbought territory while results below 30 showing that the company could be oversold.

Let’s look at the simple moving averages 200, 50 and 20 of Aetna. The stock price is 18.80% away from its 200-Day Moving Average. The distance to the 50-Day Moving Average amounts to 7.33%. Short-term, it’s a value of 3.38%.

Volatility: 349.80Million shares are outstanding of which 348.11M float. The average daily stock trading volume of the recent 3 months amounted to 2.14Million shares. On the last trading day, 2,482,063 were sold which resulted in a relative volume of 1.16. Higher values show an increasing short-term volatility.

Volatility Week --- 1.54%
Volatility Month --- 1.86%
Average True Range (ATR) --- 1.70
Beta --- 0.96

Performance:

Performance Week --- 1.66%
Performance Month --- 7.40%
Perormance Quarter --- 15.26%
Performance Half Year --- 23.43%
Performance Year --- 40.89%


Long-Term Stock Price Chart Of Aetna (AET)
Long-Term Stock Price Chart Of Aetna (AET)
Long-Term Dividend Payment History of Aetna (AET)
Long-Term Dividend Payment History of Aetna (AET)
Long-Term Dividend Yield History of Aetna (AET)
Long-Term Dividend Yield History of Aetna (AET)


Thermo Fisher Scientific -- Yield: 0.46%



Thermo Fisher Scientific (NYSE:TMO) works within the Medical Laboratories & Research industry, a part of the Healthcare sector, and has a market capitalization of $51.58 billion.

The Healthcare company employs 50,000 people, generates revenue of $16,889.60 million and has a net income of $1,895.50 million. Sales grew in average 11.20% per year over the past 5 years.

Thermo Fisher Scientific’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3,589.60 million. The EBITDA margin is 21.25 percent (the operating margin is 14.82% and the net profit margin 11.22%).

Financials: The total debt represents 34.16 percent of Thermo Fisher Scientific’s assets and the total debt in relation to the equity amounts to 70.88%. Here are some return ratios:

Return on Assets: 4.30%
Return on Equity: 9.20%
Return on Investment: 6.60%
Quick Ratio: 0.80
Current Ratio: 1.20

Twelve-trailing-months earnings per share reached a value of $4.72. Last fiscal year, Thermo Fisher Scientific paid $0.60 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 27.54, the P/S ratio is 3.08 and the P/B ratio is finally 2.53. The dividend yield amounts to 0.46%.

P/E: 27.54
Forward P/E: 15.80
PEG: 2.71
P/S: 3.08
P/B: 2.53
P/Cash: 38.46
P/Free Cashflow: 26.57

Earnings Growth: Thermo Fisher Scientific’s expected earnings growth for the next year amounts to 12.07% while earnings growth for the next five years is estimated at 10.16%.

EPS this year: 34.60%
EPS next year: 12.07%
EPS next 5 years: 10.16%

EPS past 5 years: 19.30%
Sales past 5 years: 11.20%

Ownership: Insiders of the company own 0.20% of the outstanding shares. The position changed -24.42% over the recent six months.

The second important group of the company is institutional. Those investors own 91.90% of the company’s shares. The value moved 0.37% over the past half year.

Also important for the stock price are short sellers of the company. The amount of short-selling transactions in relation to the total outstanding and floating shares amounted to 0.62%.

In relation the latest trading volume, the ratio was 1.42. High values show that a huge amount of shares being shorted. Investors hope for declining prices and showing a kind of sentiment of the stock.

Technical: The Thermo Fisher Scientific stock price changed 3.76% year-to-date. Compared to the overall market, the beta ratio was 0.92.

Shares of the Medical Laboratories & Research company are -1.52% away from its 52-Week High and 21.26% above the 52-Week Low.

The Relative-Strength-Indicator (RSI) has a value of 57.15. Values over 70 indicating an overbought territory while results below 30 showing that the company could be oversold.

Let’s look at the simple moving averages 200, 50 and 20 of Thermo Fisher Scientific. The stock price is 6.69% away from its 200-Day Moving Average. The distance to the 50-Day Moving Average amounts to 2.44%. Short-term, it’s a value of 1.88%.

Volatility: 400.03Million shares are outstanding of which 399.48M float. The average daily stock trading volume of the recent 3 months amounted to 1.73Million shares. On the last trading day, 1,064,101 were sold which resulted in a relative volume of 0.61. Higher values show an increasing short-term volatility.

Volatility Week --- 0.90%
Volatility Month --- 1.68%
Average True Range (ATR) --- 1.96
Beta --- 0.92

Performance:

Performance Week --- -0.89%
Performance Month --- 4.55%
Perormance Quarter --- 1.78%
Performance Half Year --- 8.52%
Performance Year --- 4.58%


Long-Term Stock Price Chart Of Thermo Fisher Scientific (TMO)
Long-Term Stock Price Chart Of Thermo Fisher Scientific (TMO)
Long-Term Dividend Payment History of Thermo Fisher Scientific (TMO)
Long-Term Dividend Payment History of Thermo Fisher Scientific (TMO)
Long-Term Dividend Yield History of Thermo Fisher Scientific (TMO)
Long-Term Dividend Yield History of Thermo Fisher Scientific (TMO)
Cracking The Best Healthare Dividend Stock Secret (Click to enlarge),
Source: long-term-investments.blogspot.com


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Related Stock Ticker Symbols:
ABBV, UNH, AET, AMGN, TMO, CVS, SYK, HUM, BCR, TMO, UHS, PRGO, CI

Selected Articles:

*I am long ABBV, SYK. I receive no compensation to write about these specific stocks, sector or theme. I don't plan to increase or decrease positions or obligations within the next 72 hours.

For the other stocks: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I receive no compensation to write about any specific stock, sector or theme.


3 comments:

  1. Great writeup. I am interested in ABBV and may initiate a position soon.

    ReplyDelete
  2. ABBV is the most interesting ones from your list as the others are yielding too low for my liking.

    ReplyDelete
  3. Anonymous4/25/2015

    Unh has higher div. yld. {3.32%}than Abbv.{3.24%}

    ReplyDelete

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