20 Best Yielding Large-Cap Healthcare Stocks With Low Volatility

 | Apr 02, 2013 06:55AM ET

This article discusses the highest yielding, large cap stocks from the healthcare sector that are less volatile than the market.

It’s very important when you invest money that you have a clear idea of your risk exposure. It doesn’t make sense in my view to enter big risk positions without a higher return. Every loss you can avoid is also a return you don’t need to work out.

Below is a sheet of the 20 best yielding healthcare dividend stocks with a market capitalization of more than USD 10 billion as well as a beta ratio under one. Two of the results are High-Yields and fourteen are recommended to buy. The majored drug manufactures is still the dominating group in the screen, followed by a gaining medical instruments and supplies industry.

Baxter International (BAX) has a market capitalization of $39.47 billion. The company employs 51,000 people, generates revenue of $14.190 billion and has a net income of $2.326 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3.741 billion. The EBITDA margin is 26.36 percent (the operating margin is 20.36 percent and the net profit margin 16.39 percent).

Financial Analysis: The total debt represents 29.08 percent of the company’s assets and the total debt in relation to the equity amounts to 85.47 percent. Due to the financial situation, a return on equity of 34.40 percent was realized. Twelve trailing months earnings per share reached a value of $4.18. Last fiscal year, the company paid $1.57 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 17.29, the P/S ratio is 2.77 and the P/B ratio is finally 5.69. The dividend yield amounts to 2.49 percent and the beta ratio has a value of 0.51.