Due to an aging population in the United States, the availability of a wide spectrum of medical services to prolong life and increasing demand from baby boomers for medical services, the health care sector is poised to continue growing at an above-average rate compared to broad U.S. market returns.
From 2010 to 2015, various industries within the health care sector have generated average annual returns ranging between 17% for long-term care facilities to 34% for biotechnology companies, which is substantially above the average market return in the U.S.
Overall, the health care sector is poised to continue growing and generating excess returns due to ongoing innovation and strong patent protection. Also, due to stable cash flows and a solid pipeline of products, most health care companies can afford to pay out substantial amounts of their earnings to their shareholders, resulting in high dividend yields that average from 3 to 4% as of September 2015.
Looking for high-yielding dividend stocks from the healthcare sector? We've listed the top yielders without any restrictions. Here they are...
