17 Best Healthcare Dividend Growth Picks Of The Past 20 Years

The healthcare sector should be an important part of every dividend investor's portfolio. Healthcare spending as a portion of GDP in OECD countries is expected to rise steadily over the coming decades. In East Asia, healthcare spending will also rise relative to GDP, given the steep drop in fertility in that region over the last 20 years.

An aging population is a very long-lived, secular trend, and so many well-positioned healthcare businesses have steady growth prospects as far out as the eye can see. Luckily for income investors, the healthcare sector includes many businesses that are stable, dividend-minded and have good balance sheets.

Today, I like to introduce a few of the best dividend growth stocks from the healthcare sector. You might have some great names in your mind, like Johnson & Johnson or Medtronic.

For me, the medical equipment industry is a great way to invest into the future. Pharmacy is also a great but they are more cyclic and threaten by biotech. Those get also pressure from bio-similars.

There is no guarantee for a good return in the future but I feel confident to own some of the best names in the sector.

These are the best Healthcare dividend growth picks of the past 20 years. Which stocks do you like?

12 Healthcare Dividend Stocks With High Potential To Boost Growth And Hike Dividends

Healthcare dividend stocks with low payout ratios and small debt figures originally published at long-term-investments.blogspot.com. I love the combination of low debt with little payout ratios. 

The debt situation is one of the most important issues in corporate finance. It also expresses the ability to grow sales and earnings by enlarging the balance sheet with bank loans.

Only a low leveraged corporate has potential to boost sales without taking new investors into the boat that dilute the current earnings per share.

Today I would like to start an article serial about low leveraged stocks from several sectors with currently small dividend payouts. I believe it’s good to see what companies have the biggest potential to give shareholders huge amounts of money back in the near future and believe me, the tech sector is not the only place to be.

My criteria are a low dividend payout ratio of less than 20 percent as well as a debt-to-equity ratio under 0.5. Only twelve stocks fulfilled these very tight defined criteria.

One result is a High-Yield and nine stocks are recommended to buy or better. Most of the results come from the medical appliances & supplies or equipment industry.

19 Dividend Contenders With Real Big Dividend Growth Potential

Dividend growth stocks with low payout and debt ratios originally published at "long-term-investments.blogspot.com". When I consider buying a stock, I always look at the fundamentals of a company. The current yields and P/E’s are a first step but both are only two of hundreds criteria.

If you like to evaluate the future dividend growth you should definitely look at the debt situation and the payout ratio. Also important is the expected growth. Only a growing company can hike its dividends in the long-run without paying out capital assets and destroying shareholder values.

Today I like to present Dividend Contenders with the highest dividend payout potential. If they succeed to hike further dividends over the next few years, they can become a Dividend Champion very soon. These are my criteria:

- Payout ratio below 30 percent

- Long-Term Debt to equity under 0.2

- Market Capitalization over 300 million

Nineteen companies fulfill the above mentioned criteria. Ten have a current buy or better rating.

Here are my favorite stocks:

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C.H. Robinson Worldwide (NASDAQ:CHRW) has a market capitalization of $9.55 billion. The company employs 10,929 people, generates revenue of $11.359 billion and has a net income of $593.80 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $719.72 million. The EBITDA margin is 6.34 percent (the operating margin is 5.95 percent and the net profit margin 5.23 percent).

Financial Analysis: The total debt represents 11.47 percent of the company’s assets and the total debt in relation to the equity amounts to 21.38 percent. Due to the financial situation, a return on equity of 43.14 percent was realized. Twelve trailing months earnings per share reached a value of $3.66. Last fiscal year, the company paid $1.34 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 16.26, the P/S ratio is 0.84 and the P/B ratio is finally 6.34. The dividend yield amounts to 2.37 percent and the beta ratio has a value of 0.65.

Long-Term Stock Price Chart Of C.H. Robinson Worldwide (CHRW)

Long-Term Dividend Payment History of C.H. Robinson Worldwide (CHRW)

Long-Term Dividend Yield History of C.H. Robinson Worldwide (CHRW)

Lincoln Electric Holdings (NASDAQ:LECO) has a market capitalization of $4.90 billion. The company employs 10,000 people, generates revenue of $2.853 billion and has a net income of $257.22 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $448.31 million. The EBITDA margin is 15.71 percent (the operating margin is 12.69 percent and the net profit margin 9.01 percent).

Financial Analysis: The total debt represents 0.97 percent of the company’s assets and the total debt in relation to the equity amounts to 1.51 percent. Due to the financial situation, a return on equity of 20.43 percent was realized. Twelve trailing months earnings per share reached a value of $3.10. Last fiscal year, the company paid $0.71 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 19.04, the P/S ratio is 1.71 and the P/B ratio is finally 3.63. The dividend yield amounts to 1.36 percent and the beta ratio has a value of 1.59.

Long-Term Stock Price Chart Of Lincoln Electric Holdings (LECO)

Long-Term Dividend Payment History of Lincoln Electric Holdings (LECO)

Long-Term Dividend Yield History of Lincoln Electric Holdings (LECO)

A. O. Smith (NYSE:AOS) has a market capitalization of $3.87 billion. The company employs 10,900 people, generates revenue of $1.939 billion and has a net income of $162.60 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $266.50 million. The EBITDA margin is 13.74 percent (the operating margin is 12.06 percent and the net profit margin 8.38 percent).

Financial Analysis: The total debt represents 10.76 percent of the company’s assets and the total debt in relation to the equity amounts to 20.41 percent. Due to the financial situation, a return on equity of 14.26 percent was realized. Twelve trailing months earnings per share reached a value of $1.65. Last fiscal year, the company paid $0.36 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 1.86 and the P/B ratio is finally 2.79. The dividend yield amounts to 1.24 percent and the beta ratio has a value of 1.00.

Long-Term Stock Price Chart Of A. O. Smith (AOS)

Long-Term Dividend Payment History of A. O. Smith (AOS)

Long-Term Dividend Yield History of A. O. Smith (AOS)

Ross Stores (NASDAQ:ROST) has a market capitalization of $14.32 billion. The company employs 16,000 people, generates revenue of $9.721 billion and has a net income of $786.76 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1.457 billion. The EBITDA margin is 14.99 percent (the operating margin is 13.01 percent and the net profit margin 8.09 percent).

Financial Analysis: The total debt represents 4.09 percent of the company’s assets and the total debt in relation to the equity amounts to 8.49 percent. Due to the financial situation, a return on equity of 48.27 percent was realized. Twelve trailing months earnings per share reached a value of $3.53. Last fiscal year, the company paid $0.56 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 18.42, the P/S ratio is 1.47 and the P/B ratio is finally 8.14. The dividend yield amounts to 1.04 percent and the beta ratio has a value of 0.73.

Long-Term Stock Price Chart Of Ross Stores (ROST)

Long-Term Dividend Payment History of Ross Stores (ROST)

Long-Term Dividend Yield History of Ross Stores (ROST)

Take a closer look at the full list of Dividend Contenders with big potential to hike future dividends. The average P/E ratio amounts to 15.64 and forward P/E ratio is 14.22. The dividend yield has a value of 1.59 percent. Price to book ratio is 3.01 and price to sales ratio 2.31. The operating margin amounts to 21.10 percent and the beta ratio is 0.93. Stocks from the list have an average debt to equity ratio of 0.13.

Here is the full table with some fundamentals (TTM):

Dividend Contenders With High Dividend Growth Potential (Click to enlarge)

If you like this list, please give us a Facebook Like, make a tweet or post a comment in the Dividend Yield community!

Related stock ticker symbols:

ACE, AOS, ATRI, AXS, BMI, CHRW, DGICB, FDS, FDX, HCC, IMO, LECO, LNN, MSM, PB, PRE,  QCOM, RNR, ROST

Selected Articles:

· 20 Mega Caps And Their Dividend Payments

· Best Dividend Paying Stock List As Of May 2013

· 20 Dividend Champions With Highest 10-Year Dividend Growth Rates

· 11 Dividend Challengers With Highest Dividend Payout Potential

*I am long QCOM, FDS. 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.

Monthly Yield Fact Book | Yields Dividend Champions | Yields Dividend Contenders | Yields Dividend Kings | High-Yield Large Cap | +10% Yielding Stocks | Dividend Aristocrats |

The Best Stocks With Dividend Growth From Last Week (August 20 – August 26, 2012)

Stocks With Biggest Dividend Hikes From Last Week by Dividend Yield – Stock, Capital, Investment. Here is a current sheet of companies that have announced a dividend increase within the recent week. In total, 25 stocks and funds raised dividends of which 12 have a dividend growth of more than 10 percent. The average dividend growth amounts to 16.17 percent. Exactly 10 stocks have a yield over three percent and 10 are currently recommended to buy.

20 Dividend Challengers With Very Low Debt

Dividend Challengers With Low Debt To Equity Ratios Researched By Dividend Yield - Stock, Capital, Investment. Stocks with a history of rising dividends of more than 5 years but less than 9 years in a row are named Dividend Challengers. 189 companies with such a dividend growth performance are available at the markets. But past dividend growth does not guarantee a future dividend hike if earnings are down. A major ratio to judge the ability of paying dividends from capital assets is the debt to equity ratio.

I screened all Dividend Challengers by companies with very low debt to equity ratios (ratio below 0.1). Those stocks are nearly free of debt and have a generous cushion of future dividend hikes. Below the results are some of stocks with a very low market capitalization which are not to recommend in a deeper analysis. 20 stocks with a market capitalization of more than USD 300 million remained. Twelve of them have a current buy or better rating.

Ex-Dividend Date Reminder For January 27, 2012

Here is a current overview of best yielding stocks that have their ex-dividend date on the next trading day. If your broker settles your trade today, you will receive the next dividend. A full list of all stocks with ex-dividend date can be found here: Ex-Dividend Stocks On January 27, 2012. In total, 33 stocks and preferred shares go ex-dividend of which 21 yielding above 3 percent. The average yield amounts to 5.35 percent.

The ex-dividend date is a major date related to the payment of dividends. If you purchase a stock on its ex-dividend date or later, you will not receive the next dividend payment. Instead, the seller gets the dividend. If you purchase before the ex-dividend date, you get the dividend. It is important that your broker settle your trade before the ex-dividend date.

These are the results of the best yielding stocks:

Full Circle Capital Corporation (FULL) has a market capitalization of USD 48.70 Million and operates within the “Credit Services” industry. These are the market ratios of the company:


P/E Ratio: 11.35,
Forward P/E Ratio: -,
Price/Sales Ratio: 5.05,
Price/Book Ratio: 0.86,
Dividend Yield: 11.80%.

1-Year Chart Of Full Circle Capital Corporation (Click to enlarge)

Long-Term Dividends History of Full Circle Capital Corporation (FULL) (Click to enlarge)

Prospect Capital Corporation (PSEC) has a market capitalization of USD 1.17 Billion and operates within the “Asset Management” industry. These are the market ratios of the company:


P/E Ratio: 7.55,
Forward P/E Ratio: 9.94,
Price/Sales Ratio: 6.15,
Price/Book Ratio: 1.02,
Dividend Yield: 11.44%.

1-Year Chart Of Prospect Capital Corporation (Click to enlarge)

Long-Term Dividends History of Prospect Capital Corporation (PSEC) (Click to enlarge)

Omega Healthcare Investors Inc. (OHI) has a market capitalization of USD 2.13 Billion and operates within the “REIT - Healthcare Facilities” industry. These are the market ratios of the company:


P/E Ratio: 68.83,
Forward P/E Ratio: 22.45,
Price/Sales Ratio: 7.42,
Price/Book Ratio: 2.38,
Dividend Yield: 7.94%.

1-Year Chart Of Omega Healthcare Investors Inc. (Click to enlarge)

Long-Term Dividends History of Omega Healthcare Investors Inc. (OHI) (Click to enlarge)

Student Transportation, Inc. (STB) has a market capitalization of USD 75.22 Million and operates within the “Consumer Services” industry. These are the market ratios of the company:


P/E Ratio: 6.50,
Forward P/E Ratio: -,
Price/Sales Ratio: 0.98,
Price/Book Ratio: 2.94,
Dividend Yield: 7.78%.

1-Year Chart Of Student Transportation, Inc. (Click to enlarge)

Long-Term Dividends History of Student Transportation, Inc. (STB) (Click to enlarge)

Atlantic Power Corporation (AT) has a market capitalization of USD 5.07 Billion and operates within the “Electric Utilities” industry. These are the market ratios of the company:


P/E Ratio: 5.53,
Forward P/E Ratio: -,
Price/Sales Ratio: 0.59,
Price/Book Ratio: 2.63,
Dividend Yield: 7.67%.

1-Year Chart Of Atlantic Power Corporation (Click to enlarge)

Long-Term Dividends History of Atlantic Power Corporation (AT) (Click to enlarge)

Suburban Propane Partners LP (SPH) has a market capitalization of USD 1.66 Billion and operates within the “Gas Utilities” industry. These are the market ratios of the company:


P/E Ratio: 14.56,
Forward P/E Ratio: 13.67,
Price/Sales Ratio: 1.39,
Price/Book Ratio: 4.62,
Dividend Yield: 7.29%.

1-Year Chart Of Suburban Propane Partners LP (Click to enlarge)

Long-Term Dividends History of Suburban Propane Partners LP (SPH) (Click to enlarge)

Transmontaigne Partners L.P. (TLP) has a market capitalization of USD 508.07 Million and operates within the “Oil & Gas Pipelines” industry. These are the market ratios of the company:


P/E Ratio: 17.31,
Forward P/E Ratio: 16.34,
Price/Sales Ratio: 3.33,
Price/Book Ratio: 1.45,
Dividend Yield: 7.17%.

1-Year Chart Of Transmontaigne Partners L.P. (Click to enlarge)

Long-Term Dividends History of Transmontaigne Partners L.P. (TLP) (Click to enlarge)

10 High Margin Healthcare Dividend Shares

Perfect Healthcare Dividend Stocks With High Margins by Dividend Yield - Stock, Capital, Investment. I screened stocks from the healthcare sector with a positive dividend yield as well as an operating margin of more than 25 percent. Most of the stocks come from the medical instruments and supplies industry but the highest margin stocks are from the drug, biotechnology and diagnostic industry. 5 stocks from the screening results have a yield of more than 3 percent.

Here are the 3 top dividend stocks sorted by yield:

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PDL BioPharma (NASDAQ: PDLI) has a market capitalization of $866.97 million. The company employs 8 people, generates revenues of $344.98 million and has a net income of $91.87 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $193.52 million. Because of these figures, the EBITDA margin is 56.10 percent (operating margin 56.07 percent and the net profit margin finally 26.63 percent).


The total debt representing 178.77 percent of the company’s assets. Twelve trailing months earnings per share reached a value of $0.74. Last fiscal year, the company paid $1.00 in form of dividends to shareholders.


Here are the price ratios of the company: The P/E ratio is 8.43, Price/Sales 2.51 and Price/Book ratio is not calculable. Dividend Yield: 9.68 percent. The beta ratio is 0.54.

Long-Term Stock History Chart Of PDL BioPharma Inc. (Click to enlarge)

Long-Term History of Dividends from PDL BioPharma Inc. (NASDAQ: PDLI) (Click to enlarge)

Long-Term Dividend Yield History of PDL BioPharma Inc. (NASDAQ: PDLI) (Click to enlarge)

AstraZeneca (NYSE: AZN) has a market capitalization of $61.13 billion. The company employs 61,100 people, generates revenues of $33,269.00 million and has a net income of $8,081.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $13,380.00 million. Because of these figures, the EBITDA margin is 40.22 percent (operating margin 34.55 percent and the net profit margin finally 24.29 percent).


The total debt representing 16.43 percent of the company’s assets and the total debt in relation to the equity amounts to 39.73 percent. Due to the financial situation, a return on equity of 36.71 percent was realized. Twelve trailing months earnings per share reached a value of $7.29. Last fiscal year, the company paid $2.55 in form of dividends to shareholders.


Here are the price ratios of the company: The P/E ratio is 6.35, Price/Sales 1.78 and Price/Book ratio 2.81. Dividend Yield: 5.83 percent. The beta ratio is 0.62.

Long-Term Stock History Chart Of AstraZeneca plc (ADR) (Click to enlarge)

Long-Term History of Dividends from AstraZeneca plc (ADR) (NYSE: AZN) (Click to enlarge)

Long-Term Dividend Yield History of AstraZeneca plc (ADR) (NYSE: AZN) (Click to enlarge)

Meridian Bioscience (NASDAQ: VIVO) has a market capitalization of $777.02 million. The company employs 525 people, generates revenues of $159.72 million and has a net income of $26.83 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $45.73 million. Because of these figures, the EBITDA margin is 28.63 percent (operating margin 25.06 percent and the net profit margin finally 16.80 percent).


The total debt representing 0.00 percent of the company’s assets and the total debt in relation to the equity amounts to 0.00 percent. Due to the financial situation, a return on equity of 19.45 percent was realized. Twelve trailing months earnings per share reached a value of $0.65. Last fiscal year, the company paid $0.76 in form of dividends to shareholders.


Here are the price ratios of the company: The P/E ratio is 29.03, Price/Sales 4.86 and Price/Book ratio 5.61. Dividend Yield: 4.03 percent. The beta ratio is 0.80.

Long-Term Stock History Chart Of Meridian Bioscience, Inc. (Click to enlarge)

Long-Term History of Dividends from Meridian Bioscience, Inc. (NASDAQ: VIVO) (Click to enlarge)

Long-Term Dividend Yield History of Meridian Bioscience, Inc. (NASDAQ: VIVO) (Click to enlarge)

Here is the full table with some fundamentals (TTM):

10 High Margin Healthcare Dividend Shares (Click to enlarge)

Take a closer look at the full table. The average price to earnings ratio (P/E ratio) amounts to 17.62 while the forward price to earnings ratio is 14.23. The dividend yield has a value of 3.46 percent. Price to book ratio is 4.28 and price to sales ratio 4.17. The operating margin amounts to 37.47 percent.

Related stock ticker symbols:

PDLI, AZN, VIVO, BMY, UTMD, AMGN, TECH, NVO, MLAB, ATRI

Selected Articles:

· Best Healthcare Stock Picks For 2012

· 12 Healthcare Dividend Stocks With Best Future EPS Growth

· 14 Healthcare Dividend Stocks With Biggest Institutional Buys

· 8 Healthcare Dividend Stocks Close to 52-Week Low

* 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.