Healthcare
dividend stocks with best yields and big growth perspectives originally
published at "long-term-investments.blogspot.com". The healthcare sector is one of my favorite sectors behind the consumer goods sector. I love stocks from the medical equipment and appliances industry. Sure they offer a lower dividend but most of the stocks are major diversified in terms of international sales and they have a wonderful growth perspective.
Stocks from the whole healthcare sector have a total market capitalization of USD 66.298 billion. The average stock from the sector has a P/E of 26.63 and yield at 3.32 percent. These are very attractive figures from the earnings perspective. Debt is also high with a long-term debt to equity ratio of 88.63. As a result, the return on equity amounts to 17.61 percent.
Today I like to show you the best yielding healthcare growth opportunities at the market. I screened all healthcare stocks with a positive dividend payment and double-digit earnings per share growth for the next five years.
Nearly 40 companies fulfilled these criteria but some of them pay only very low dividends. Below is a small list of 20 stocks with the highest yield. Eleven of the results have a buy or better rating.
Here are my favorite stocks:
St. Jude Medical (NYSE:STJ) has a market capitalization of $12.69 billion. The company employs 16,000 people, generates revenue of $5.503 billion and has a net income of $752.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1.100 billion. The EBITDA margin is 19.99 percent (the operating margin is 19.99 percent and the net profit margin 13.67 percent).
Financial Analysis: The total debt represents 33.66 percent of the company’s assets and the total debt in relation to the equity amounts to 75.23 percent. Due to the financial situation, a return on equity of 17.55 percent was realized. Twelve trailing months earnings per share reached a value of $2.38. Last fiscal year, the company paid $0.92 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 17.26, the P/S ratio is 2.31 and the P/B ratio is finally 3.10. The dividend yield amounts to 2.23 percent and the beta ratio has a value of 0.84.
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| Long-Term Stock History Chart Of St. Jude Medical (STJ) |
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| Long-Term Dividends History of St. Jude Medical (STJ) |
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| Long-Term Dividend Yield History of St. Jude Medical (STJ) |
Amgen (NASDAQ:AMGN) has a market capitalization of $65.24 billion. The company employs 17,500 people, generates revenue of $17.265 billion and has a net income of $4.345 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $5.871 billion. The EBITDA margin is 34.01 percent (the operating margin is 32.30 percent and the net profit margin 25.17 percent).
Financial Analysis: The total debt represents 48.86 percent of the company’s assets and the total debt in relation to the equity amounts to 139.19 percent. Due to the financial situation, a return on equity of 22.81 percent was realized. Twelve trailing months earnings per share reached a value of $5.52. Last fiscal year, the company paid $1.44 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 15.64, the P/S ratio is 3.84 and the P/B ratio is finally 3.42. The dividend yield amounts to 2.18 percent and the beta ratio has a value of 0.39.
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| Long-Term Stock History Chart Of Amgen (AMGN) |
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| Long-Term Dividends History of Amgen (AMGN) |
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| Long-Term Dividend Yield History of Amgen (AMGN) |
STERIS (NYSE:STE) has a market capitalization of $2.22 billion. The company employs 5,000 people, generates revenue of $1.406 billion and has a net income of $136.12 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $283.02 million. The EBITDA margin is 20.12 percent (the operating margin is 15.80 percent and the net profit margin 9.68 percent).
Financial Analysis: The total debt represents 14.94 percent of the company’s assets and the total debt in relation to the equity amounts to 25.57 percent. Due to the financial situation, a return on equity of 16.92 percent was realized. Twelve trailing months earnings per share reached a value of $2.54. Last fiscal year, the company paid $0.66 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 14.94, the P/S ratio is 1.58 and the P/B ratio is finally 2.67. The dividend yield amounts to 2.00 percent and the beta ratio has a value of 0.71.
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| Long-Term Stock History Chart Of STERIS (STE) |
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| Long-Term Dividends History of STERIS (STE) |
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| Long-Term Dividend Yield History of STERIS (STE) |
WellPoint (NYSE:WLP) has a market capitalization of $19.83 billion. The company employs 37,700 people, generates revenue of $61.711 billion and has a net income of $2.655 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4.729 billion. The EBITDA margin is 7.66 percent (the operating margin is 6.26 percent and the net profit margin 4.30 percent).
Financial Analysis: The total debt represents 25.41 percent of the company’s assets and the total debt in relation to the equity amounts to 62.93 percent. Due to the financial situation, a return on equity of 11.28 percent was realized. Twelve trailing months earnings per share reached a value of $8.13. Last fiscal year, the company paid $1.15 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 8.04, the P/S ratio is 0.32 and the P/B ratio is finally 0.83. The dividend yield amounts to 1.76 percent and the beta ratio has a value of 0.93.
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| Long-Term Stock History Chart Of WellPoint (WLP) |
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| Long-Term Dividends History of WellPoint (WLP) |
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| Long-Term Dividend Yield History of WellPoint (WLP) |
UnitedHealth Group (NYSE:UNH) has a market capitalization of $56.97 billion. The company employs 99,000 people, generates revenue of $110.618 billion and has a net income of $5.526 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $10.563 billion. The EBITDA margin is 9.55 percent (the operating margin is 8.37 percent and the net profit margin 5.00 percent).
Financial Analysis: The total debt represents 20.71 percent of the company’s assets and the total debt in relation to the equity amounts to 53.74 percent. Due to the financial situation, a return on equity of 18.58 percent was realized. Twelve trailing months earnings per share reached a value of $5.28. Last fiscal year, the company paid $0.80 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 10.56, the P/S ratio is 0.52 and the P/B ratio is finally 1.83. The dividend yield amounts to 1.52 percent and the beta ratio has a value of 0.89.
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| Long-Term Stock History Chart Of UnitedHealth Group (UNH) |
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| Long-Term Dividends History of UnitedHealth Group (UNH) |
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| Long-Term Dividend Yield History of UnitedHealth Group (UNH) |
Take a closer look at the full list of the best yielding healthcare growth stocks. The average P/E ratio amounts to 16.30
and forward P/E ratio is 14.94. The dividend yield has a value of 2.83 percent.
Price to book ratio is 3.36 and price to sales ratio 2.18. The operating margin
amounts to 20.89 percent and the beta ratio is 20.89. Stocks from the list have
an average debt to equity ratio of 0.49, a value below the sector average.
Here is the full table with
some fundamentals (TTM):
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| 20 Best Yielding Healthcare Growth Stocks |
Related stock
ticker symbols:
PDLI, HSKA, ABBV,
ALC, VIVO, HLF, QCOR, NHC, MSA, STJ, AMGN, DGX, CNMD, STE, WLP, TECH, RELV, RMD,
UNH, HRC
Selected Articles:
*I am long HLF. 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.
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