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10 Best Healthcare Dividend Stocks
In this article we analyze 10 best healthcare dividend stocks. Our thesis scrutinizes top healthcare companies with solid product pipelines as well as a strong history of dividends, with over 2% yield and no cuts in the last 5 years (including 2020). Click to skip ahead our discussion and see the
The coronavirus crisis ushered in an era of dramatic volatility for healthcare stocks. While major healthcare companies like Pfizer Inc. (PFE), Moderna Inc (NASDAQ: MRNA) and AstraZeneca plc (NASDAQ: AZN) became the center of attention as the world held its breath for a vaccine, major hospital operators, pharmacies and health services companies suffered losses amid declining elective surgeries, emergency department and clinic closures. According to a study conducted by the American Hospital Association, American hospitals and health systems suffered a $202.6 billion loss in a period of four months because of the coronavirus crisis. Despite all of this,
As a group, health-care stocks trade at discounted valuations and make up less than 14% of the S&P 500’s market weighting. That seems unlikely to last, says Citi, given that health-care spending is 18% of the economy and growing. “[W]e expect the sector to at least come up to averages,” say the Citi analysts, “implying upside/outperformance for 2021.”
AstraZeneca (ticker: AZN) is the top pharma pick of Citi analyst Andrew Baum. Complementing the strong sales of Astra’s cancer drug Tagrisso are the rising sales of its cancer treatments Imfinzi and Calquence. Other building blockbusters include the diabetes treatment Farxiga. Baum thinks the stock could rise by one-third from its recent price of $49.