16 Best Dividend Paying Healthcare Stocks
Dividend Yield | Sep 03, 2012 04:28AM ET
The healthcare sector is a great investment field with fantastic growth potential. The whole sector has a total market capitalization of USD 43.18 trillion and summarizes 543 companies. The average dividend yield for stocks within the sector amounts to 3.34 percent and the P/E ratio is 22.59.
In order to find the best dividend paying stocks within the sector, I screened all companies with a positive dividend yield, great earnings per share growth of more than five percent and an operating margin over 15 percent. In order get the best results in terms of low debt and high cash, the debt to equity ratio should be under 0.5. Sixteen healthcare companies remain of which four yielding over three percent and thirteen are currently recommended to buy.
Covidien (NYSE:COV) has a market capitalization of $26.91 billion. The company employs 41,300 people, generates revenue of $11,574.00 million and has a net income of $1,883.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,974.00 million. The EBITDA margin is 25.70 percent (operating margin 20.52 percent and net profit margin 16.27 percent).
Financial Analysis: The total debt represents 20.65 percent of the company’s assets and the total debt in relation to the equity amounts to 42.86 percent. Due to the financial situation, a return on equity of 20.04 percent was realized. Twelve trailing months earnings per share reached a value of $3.89. Last fiscal year, the company paid $0.83 in form of dividends to shareholders. The earnings are expected to grow by 10.34 percent for the next five years.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 14.41, P/S ratio 2.32 and P/B ratio 2.75. Dividend Yield: 1.61 percent. The beta ratio is 0.84.
Stryker Corporation (NYSE:SYK) has a market capitalization of $20.26 billion. The company employs 21,241 people, generates revenue of $8,307.00 million and has a net income of $1,345.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,167.00 million. The EBITDA margin is 26.09 percent (operating margin 20.30 percent and net profit margin 16.19 percent).
Financial Analysis: The total debt represents 14.25 percent of the company’s assets and the total debt in relation to the equity amounts to 23.01 percent. Due to the financial situation, a return on equity of 18.11 percent was realized. Twelve trailing months earnings per share reached a value of $3.65. Last fiscal year, the company paid $0.75 in form of dividends to shareholders. The earnings are expected to grow by 10.84 percent for the next five years.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 14.60, P/S ratio 2.44 and P/B ratio 2.64. Dividend Yield: 1.60 percent. The beta ratio is 0.88.
Get The News You Want
Zimmer Holdings (NYSE:ZMH) has a market capitalization of $10.79 billion. The company employs 8,500 people, generates revenue of $4,451.80 million and has a net income of $760.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,384.00 million. The EBITDA margin is 31.09 percent (operating margin 23.00 percent and net profit margin 17.07 percent).
Financial Analysis: The total debt represents 20.19 percent of the company’s assets and the total debt in relation to the equity amounts to 31.22 percent. Due to the financial situation, a return on equity of 13.49 percent was realized. Twelve trailing months earnings per share reached a value of $4.28. Last fiscal year, the company paid $0.00 in form of dividends to shareholders. The earnings are expected to grow by 10.35 percent for the next five years.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 14.44, P/S ratio 2.42 and P/B ratio 2.00. Dividend Yield: 1.17 percent. The beta ratio is 0.99.
The Cooper Companies (NYSE:COO) has a market capitalization of $4.04 billion. The company employs 7,400 people, generates revenue of $1,330.84 million and has a net income of $175.43 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $309.22 million. The EBITDA margin is 23.23 percent (operating margin 15.86 percent and net profit margin 13.18 percent).
Financial Analysis: The total debt represents 14.50 percent of the company’s assets and the total debt in relation to the equity amounts to 19.64 percent. Due to the financial situation, a return on equity of 9.73 percent was realized. Twelve trailing months earnings per share reached a value of $4.18. Last fiscal year, the company paid $0.06 in form of dividends to shareholders. The earnings are expected to grow by 15.10 percent for the next five years.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 20.04, P/S ratio 3.03 and P/B ratio 2.07. Dividend Yield: 0.07 percent. The beta ratio is 0.86.
Take a closer look at the full table of the best dividend paying healthcare stocks. The average price to earnings ratio (P/E ratio) amounts to 18.65 and forward P/E ratio is 13.77. The dividend yield has a value of 2.05 percent. Price to book ratio is 3.83 and price to sales ratio 3.31. The operating margin amounts to 23.20 percent and the beta ratio is 0.91.
Here is the full table with some fundamentals (TTM):
Related stock ticker symbols:
ALC, VIVO, SNY, JNJ, STE, RMD, TECH, COV, NVO, SYK, USPH, TRIB,
ZMH, MR, AGN, COO
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.