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:

7 Most Profitable Healthcare Dividend Stocks With Great Yields

Healthcare Dividend Stocks With High Return On Investments And Big Operating Margins Researched By Dividend Yield - Stock, Capital, Investment. Healthcare dividend stocks delivered a fantastic return over the recent twenty years. Now, they are struggling due to the fact that most of their patents are drain off within the upcoming years. They have no serious alternative to compensate the expected revenue losses and to drive growth. Companies with high margins will survive the consolidation best. Here is a little screen of dividend stocks from the healthcare sector that have the best margins and returns. Both measured by a return on investment and an operating margin of more than 20 percent. Seven stocks fulfilled these criteria of which five come from the drug manufacturing industry. Also five have a current buy or better recommendation.

15 Healthcare Dividend Stocks With Buy Or Better Recommendation

Healthcare Dividend Shares With Buy And Stong Buy Rating researched by Dividend Yield - Stock, Capital, Investment. Here is a current overview of stocks from the healthcare sector with a minimum dividend yield of 3 percent that have an actual buy or better rating outstanding. The recommendations are made by analysts and brokerage firms and measured on a scale between one and five. I listed all healthcare dividend stocks with a rating above 3 (buy or better). Exactly 15 companies fulfilled these criteria of which 8 have a strong buy rating and 7 a buy recommendation.

Here are the 3 top dividend stocks sorted by yield:

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Psychemedics (NASDAQ: PMD) has a market capitalization of $47.64 million. The company employs 91 people, generates revenues of $20.11 million and has a net income of $2.61 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4.70 million. Because of these figures, the EBITDA margin is 23.36 percent (operating margin 21.95 percent and the net profit margin finally 13.00 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 27.45 percent was realized. Twelve trailing months earnings per share reached a value of $0.66. Last fiscal year, the company paid $0.48 in form of dividends to shareholders.


Here are the price ratios of the company: The P/E ratio is 13.76, Price/Sales 2.37 and Price/Book ratio 4.87. Dividend Yield: 5.27 percent. The beta ratio is 0.84.

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

Long-Term History of Dividends from Psychemedics Corp. (NASDAQ: PMD) (Click to enlarge)

Long-Term Dividend Yield History of Psychemedics Corp. (NASDAQ: PMD) (Click to enlarge)

GlaxoSmithKline (NYSE: GSK) has a market capitalization of $115.53 billion. The company employs 96,461 people, generates revenues of $44,106.82 million and has a net income of $2,878.62 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $8,494.51 million. Because of these figures, the EBITDA margin is 19.26 percent (operating margin 13.32 percent and the net profit margin finally 6.53 percent).


The total debt representing 35.76 percent of the company’s assets and the total debt in relation to the equity amounts to 169.91 percent. Due to the financial situation, a return on equity of 17.30 percent was realized. Twelve trailing months earnings per share reached a value of $2.02. Last fiscal year, the company paid $2.02 in form of dividends to shareholders.


Here are the price ratios of the company: The P/E ratio is 22.61, Price/Sales 2.60 and Price/Book ratio 8.41. Dividend Yield: 4.83 percent. The beta ratio is 0.63.

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

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

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

Sanofi SA (NYSE: SNY) has a market capitalization of $98.09 billion. The company employs 101,575 people, generates revenues of $41,469.25 million and has a net income of $5,640.13 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $13,867.96 million. Because of these figures, the EBITDA margin is 33.44 percent (operating margin 18.59 percent and the net profit margin finally 13.60 percent).


The total debt representing 9.69 percent of the company’s assets and the total debt in relation to the equity amounts to 15.56 percent. Due to the financial situation, a return on equity of 10.78 percent was realized. Twelve trailing months earnings per share reached a value of $2.29. Last fiscal year, the company paid $1.62 in form of dividends to shareholders.


Here are the price ratios of the company: The P/E ratio is 15.93, Price/Sales 2.38 and Price/Book ratio 1.39. Dividend Yield: 4.83 percent. The beta ratio is 0.89.

Long-Term Stock History Chart Of Sanofi SA (ADR) (Click to enlarge)

Long-Term History of Dividends from Sanofi SA (ADR) (NYSE: SNY) (Click to enlarge)

Long-Term Dividend Yield History of Sanofi SA (ADR) (NYSE: SNY) (Click to enlarge)

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

15 Healthcare Dividend Stocks With Buy Or Better Recommendation (Click to enlarge)

Take a closer look at the full table. The average price to earnings ratio (P/E ratio) amounts to 17.45 while the forward price to earnings ratio is 12.11. The dividend yield has a value of 3.99 percent. Price to book ratio is 3.11 and price to sales ratio 2.28. The operating margin amounts to 18.50 percent.

Related stock ticker symbols:

PMD, SNY, GSK, NDZ, MRK, NVS, PFE, VIVO, AVCA, BMY, UTMD, JNJ, ABT, MSA, LNCR

Selected Articles:

· Best Healthcare Stock Picks For 2012

· 10 High Yielding Drug Manufacturers

· 12 Best Yielding Medical Instruments And Supplies Stocks

· Best Pharmaceutical Shares For Income Investors

I am long JNJ. 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.