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If you like to follow the buying trends of institutional investors such as hedge fund managers and mutual fund managers, you may be interested in this list. We ran a screen on healthcare stocks paying dividends for those that have seen significant net institutional buying over the current quarter.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.‬



We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month. To access a complete analysis of this list's recent performance, click here.

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Do you agree with the smart money on these names? Use this list as a starting point for your own analysis.

List sorted by net institutional purchases as a percent of share float.

1. Medtronic, Inc. (MDT):
Medtronic manufactures and sells device-based medical therapies worldwide. Market cap of $36.30B. Dividend yield at 2.84%, payout ratio at 31.75%. Net institutional shares purchased over the current quarter at 80.9M, which is 7.63% of the company's 1.06B share float. The stock has gained 6.34% over the last year.

2. The Ensign Group, Inc. (ENSG): Provides nursing and rehabilitative care services in California, Arizona, Texas, Washington, Utah, Colorado and Idaho. Market cap of $454.22M. Dividend yield at 1.02%, payout ratio at 9.03%. Net institutional shares purchased over the current quarter at 873.1K, which is 5.36% of the company's 16.28M share float. The stock is a short squeeze candidate, with a short float at 6.97% (equivalent to six days of average volume). The stock has gained 22.18% over the last year.

3. Chemed Corp. (CHE): Provides hospice care and repair and cleaning services in the United States. Market cap of $1.18B. Dividend yield at 1.16%, payout ratio at 14.76%. Net institutional shares purchased over the current quarter at 557.7K, which is 2.7% of the company's 20.66M share float. The stock is a short squeeze candidate, with a short float at 5.41% (equivalent to 7.33 days of average volume). The stock has gained 6.22% over the last year.

4. Lincare Holdings Inc. (LNCR): Provides oxygen and other respiratory therapy services to the home healthcare market in the United States. Market cap of $1.90B. Dividend yield at 3.93%, payout ratio at 31.48%. Net institutional shares purchased over the current quarter at 2.3M, which is 2.57% of the company's 89.35M share float. Might be undervalued at current levels, with a PEG ratio at 0.69, and P/FCF ratio at 10.59. The stock has performed poorly over the last month, losing 12.43%.

5. Becton, Dickinson and Company (BDX): Develops, manufactures and sells medical devices, instrument systems and reagents worldwide. Market cap of $17.07B. Dividend yield at 2.09%, payout ratio at 28.22%. Net institutional shares purchased over the current quarter at 4.8M, which is 2.22% of the company's 215.75M share float. The stock has gained 13.42% over the last year.

*Institutional data sourced from Fidelity, all other data sourced from Finviz.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Source: 5 Healthcare Dividend Stocks Being Bought By Smart Money