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Showing posts with label NHC. Show all posts
Showing posts with label NHC. Show all posts

10 Highest Yielding Healthcare Dividend Stocks

Healthcare's stable revenue and growing demand due to aging baby boomers makes it a hit with income investors, but not every healthcare stock with a big dividend yield is ripe to buy. 

These 10 healthcare stocks offer the best dividend yields in the sector, yet investors should avoid most of them. 

The 10 best dividend yields in healthcare We'll get into the nitty-gritty of which of these stocks are buys and sells in a minute, but first let's take a look at the list of the top 10 highest-dividend-yielding healthcare stocks:

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?

20 Of The Best Yielding Healthcare Growth Stocks For The Next Years

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.

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.

13 Dividend Challengers For Less Than Book Value

Cheap Dividend Challengers In Terms Of Price To Book Value Researched by Dividend Yield - Stock, Capital, Investment. Here is a current overview of Dividend Challengers, stocks that have raised dividends for 5-9 consecutive years, with a price to book ratio below one. The ratio shows that the company is currently priced under the reproduction value. Cheap or not? To answer this question, we need additional ratios. The screen matched 13 stocks of which 3 yielding over 4 percent. American Equity Investment Holding (AEL) is the only stock with a strong buy recommendation.

Here are my favorite stocks:
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American Greetings (NYSE: AM) has a market capitalization of $528.00 million. The company employs 7,400 people, generates revenues of $1,592.57 million and has a net income of $87.02 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $215.75 million. Because of these figures, the EBITDA margin is 13.55 percent (operating margin 10.97 percent and the net profit margin finally 5.46 percent).


The total debt representing 15.04 percent of the company’s assets and the total debt in relation to the equity amounts to 30.47 percent. Due to the financial situation, a return on equity of 12.30 percent was realized. Twelve trailing months earnings per share reached a value of $1.99. Last fiscal year, the company paid $0.56 in form of dividends to shareholders.


Here are the price ratios of the company: The P/E ratio is 6.92, Price/Sales 0.31 and Price/Book ratio 0.73. Dividend Yield: 4.35 percent. The beta ratio is 1.74.


Long-Term Stock History Chart Of American Greetings Corp. (Click to enlarge)


Long-Term History of Dividends from American Greetings Corp. (NYSE: AM) (Click to enlarge)
Long-Term Dividend Yield History of American Greetings Corp. (NYSE: AM) (Click to enlarge)


The Travelers Companies (NYSE: TRV) has a market capitalization of $24.51 billion. The company employs 32,000 people, generates revenues of $25,112.00 million and has a net income of $3,216.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $8,496.00 million. Because of these figures, the EBITDA margin is 33.83 percent (operating margin 17.15 percent and the net profit margin finally 12.81 percent).


The total debt representing 6.29 percent of the company’s assets and the total debt in relation to the equity amounts to 25.95 percent. Due to the financial situation, a return on equity of 12.09 percent was realized. Twelve trailing months earnings per share reached a value of $3.78. Last fiscal year, the company paid $1.41 in form of dividends to shareholders.


Here are the price ratios of the company: The P/E ratio is 15.69, Price/Sales 0.98 and Price/Book ratio 1.02. Dividend Yield: 2.76 percent. The beta ratio is 0.70.


Long-Term Stock History Chart Of The Travelers Companie... (Click to enlarge)


Long-Term History of Dividends from The Travelers Companie... (NYSE: TRV) (Click to enlarge)
Long-Term Dividend Yield History of The Travelers Companie... (NYSE: TRV) (Click to enlarge)


National HealthCare Corp. (NYSEAMEX: NHC) has a market capitalization of $585.92 million. The company employs 12,760 people, generates revenues of $715.50 million and has a net income of $52.70 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $88.84 million. Because of these figures, the EBITDA margin is 12.42 percent (operating margin 8.55 percent and the net profit margin finally 7.36 percent).


The total debt representing 1.21 percent of the company’s assets and the total debt in relation to the equity amounts to 1.78 percent. Due to the financial situation, a return on equity of 11.80 percent was realized. Twelve trailing months earnings per share reached a value of $3.99. Last fiscal year, the company paid $1.10 in form of dividends to shareholders.


Here are the price ratios of the company: The P/E ratio is 10.61, Price/Sales 0.82 and Price/Book ratio 1.48. Dividend Yield: 2.83 percent. The beta ratio is 0.55.


Long-Term Stock History Chart Of National HealthCare Corp. (Click to enlarge)


Long-Term History of Dividends from National HealthCare Corp. (NYSEAMEX: NHC) (Click to enlarge)
Long-Term Dividend Yield History of National HealthCare Corp. (NYSEAMEX: NHC) (Click to enlarge)

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

14 Dividend Challengers For Less Than Book Value

Take a closer look at the full table. The average price to earnings ratio (P/E ratio) amounts to 15.08 while the forward price to earnings ratio is 8.29. The dividend yield has a value of 2.63 percent. Price to book ratio is 0.80 and price to sales ratio 0.77. The operating margin amounts to 9.05 percent.

Related stock ticker symbols:
UCBA, CHEV, AM, TWGP, THG, ACI, LSBK, NHC, TRV, AFG, AIZ, VSEC, AEL

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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.