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Top-down macro investors are divided on healtcare. Some healthcare bears see the sector as a future victim of regulation, price fixing, and special taxation. On the contrary, healtchcare bulls cite demand derived from aging populations in the developed world and government barriers to price competition as a recipie for outperformance.

Either way, bottom–up income investors can find attractive dividend stocks in the healthcare sector. A list of seven stocks with attractive metrics was complied. Each boasts a dividend return that exceeds treasury bonds, a decade of dividend payments, and a decade of attractive equity returns:

Abbott Laboratories (NYSE:ABT) recently traded at $54.23 per share. At this price level, the stock has a 3.5% dividend yield. For 10 out of the past 10 fiscal years, a share of ABT paid a total of $11.95 in dividends.

ABT shareholders have enjoyed a 17.5% increase in share price over the past year. Currently shares of this large-cap stock trade at a price-to-book ratio of 3.4, a price-to-earnings multiple of 18.7, and a price-to-sales multiple of 2.2 (trailing twelve months). Over the past decade shareholders enjoyed a 22.7% average annual return on equity.

Johnson & Johnson (NYSE:JNJ) recently traded at $63.18 per share. At this price level, the stock has a 3.6% dividend yield. For 10 out of the past 10 fiscal years, a share of JNJ paid a total of $13.73 in dividends.

JNJ shareholders have seen a 5.9% change in share price over the past year. Currently shares of this large-cap stock trade at a price-to-book ratio of 2.8, a price-to-earnings multiple of 15.4, and a price-to-sales multiple of 2.7 (trailing twelve months). Over the past decade shareholders enjoyed a 27.8% average annual return on equity.

Eli Lilly & Co. (NYSE:LLY) recently traded at $40.04 per share. At this price level, the stock has a 4.9% dividend yield. For 10 out of the past 10 fiscal years, a share of LLY paid a total of $15.74 in dividends.

LLY shareholders have enjoyed a 20.6% rise in share price over the past year. Currently shares of this large-cap stock trade at a price-to-book ratio of 3.1, a price-to-earnings multiple of 9.6, and a price-to-sales multiple of 1.9 (trailing twelve months). Over the past decade shareholders enjoyed a 25.2% average annual return on equity.

Mine Safety Appliances Co. (NYSE:MSA) recently traded at $31.93 per share. At this price level, the stock has a 3.3% dividend yield. For 10 out of the past 10 fiscal years, a share of MSA paid a total of $5.96 in dividends. Of these dividend payments, a total of $4.41 was paid in the last five years.

MSA shareholders have seen a 5.8% increase in share price over the past year. Currently shares of this small-cap stock trade at a price-to-book ratio of 2.5, a price-to-earnings multiple of 18.4, and a price-to-sales multiple of 1.0 (trailing twelve months). Over the past decade shareholders enjoyed a 15.7% average annual return on equity.

Pfizer Inc. (NYSE:PFE) recently traded at $20.86 per share. At this price level, the stock has a 3.8% dividend yield. For 10 out of the past 10 fiscal years, a share of PFE paid a total of $7.87 in dividends. Of these dividend payments, a total of $4.92 was paid in the last five years.

PFE shareholders have enjoyed a 24.2% rise in share price over the past year. At present, shares of this largecap stock trade at a price-to-book ratio of 1.8, a price-to-earnings multiple of 16.4, and a price-to-sales multiple of 2.4 (trailing twelve months). Over the past decade shareholders saw a 19.8% average annual return on equity.

Span-America Medical Systems Inc. (NASDAQ:SPAN) recently traded at $13.38 per share. At this price level, the stock has a 3.3% dividend yield. For 10 out of the past 10 fiscal years, a share of SPAN paid a total of $2.30 in dividends. Of these dividend payments, a total of $1.60 was paid in the last five years.

SPAN shareholders have endured a -6.8% decrease in share price over the past year. Currently shares of this nano-cap stock trade at a price-to-book ratio of 1.6, a price-to-earnings multiple of 10.3, and a price-to-sales multiple of 0.7 (trailing twelve months). Over the past decade shareholders saw a 15.1% average annual return on equity.

Meridian Bioscience Inc. (NASDAQ:VIVO) recently traded at $18.41 per share. At this price level, the stock has a 4.1% dividend yield. For 10 out of the past 10 fiscal years, a share of VIVO paid a total of $3.35 in dividends. Of these dividend payments, a total of $2.60 was paid in the last five years.

VIVO shareholders have suffered a -17.6% drop in share price over the past year. Currently shares of this small-cap stock trade at a price-to-book ratio of 5.5, a price-to-earnings multiple of 28.3, and a price-to-sales multiple of 4.8 (trailing twelve months). Over the past decade shareholders enjoyed a 16.2% average annual return on equity.

Regardless of macro headwinds or tailwinds, these stocks deserve consideration as components of a diversified income portfolio.


Disclaimer: This article was written to provide investor information and education, and should not be construed as a guarantee or investment advice. I have no idea what your individual risk, time-horizon, and tax circumstances are: please seek the personal advice of a financial planner. This article uses third-party data and may contain approximations and errors. Please check estimates and data for yourself before investing. To repeat, this research does NOT constitute a guarantee.

Source: 7 Top Dividend Healthcare Stocks