New Threads Only:  Add to Google Reader or Homepage
New Threads & Replies:  Add to Google Reader or Homepage
Forums are for serious investors only. GuruFocus Forum Rules.

Forum List » Income Investors' Forum
Ideas for Income Investors. High Dividend Stocks, Mutual Funds etc.
New Topic Search
Goto Thread: PreviousNext
Goto: Forum ListMessage ListNew TopicSearchLog In
My 5 Favorite High Beta Health Care Dividend Stocks
Posted by: Dividend (IP Logged)
Date: August 2, 2013 09:22AM

You know that I am a conservative investor and try to minimize my risk. This strategy is necessary if you have a larger amount of money to take care of or you begin to cry when you lose 10 percent on your book value. The second disadvantage is that you lose performance in a strong up moving market.

Since 2009, there were nearly no bigger corrections at the market but with low beta and safe haven stocks, your performance would be only half of the return from the markets. What you need to get a push for your portfolio is a high beta stock. I don’t recommend buying them because it’s a definitely riskier strategy and nobody knows when the market turns into a bearish mood.

However, let’s take a look at the high fly momentum stocks from the healthcare sector. Those are stocks with the highest beta ratio from the sector. They have a beta between 1 and 2. With focus on the dividend paying stocks, only 17 stocks from the health care sector pay a dividend and are correlated with the market by a factor of up to 2.

One high-yield is below the results and 16 have a current buy or better rating by brokerage firms.

Here are my favorite stocks:

CIGNA (CI)
has a market capitalization of $22.05 billion. The company employs 35,800 people, generates revenue of $29.119 billion and has a net income of $1.624 billion. CIGNA’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3.037 billion. The EBITDA margin is 10.43 percent (the operating margin is 8.51 percent and the net profit margin 5.58 percent).

Financial Analysis: The total debt represents 9.65 percent of CIGNA’s assets and the total debt in relation to the equity amounts to 53.10 percent. Due to the financial situation, a return on equity of 18.27 percent was realized by CIGNA. Twelve trailing months earnings per share reached a value of $4.52. Last fiscal year, CIGNA paid $0.04 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 17.10, the P/S ratio is 0.76 and the P/B ratio is finally 2.28. The dividend yield amounts to 0.05 percent and the beta ratio has a value of 1.38.

Agilent Technologies (A) has a market capitalization of $15.88 billion. The company employs 20,500 people, generates revenue of $6.858 billion and has a net income of $1.153 billion. Agilent Technologies’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1.555 billion. The EBITDA margin is 22.67 percent (the operating margin is 16.32 percent and the net profit margin 16.81 percent).

Financial Analysis: The total debt represents 22.42 percent of Agilent Technologies’s assets and the total debt in relation to the equity amounts to 45.58 percent. Due to the financial situation, a return on equity of 24.30 percent was realized by Agilent Technologies. Twelve trailing months earnings per share reached a value of $2.88. Last fiscal year, Agilent Technologies paid $0.30 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 16.01, the P/S ratio is 2.25 and the P/B ratio is finally 2.99. The dividend yield amounts to 1.07 percent and the beta ratio has a value of 1.56.

Zimmer Holdings (ZMH) has a market capitalization of $14.16 billion. The company employs 9,300 people, generates revenue of $4.471 billion and has a net income of $752.90 million. Zimmer Holdings’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1.661 billion. The EBITDA margin is 37.16 percent (the operating margin is 23.42 percent and the net profit margin 16.84 percent).

Financial Analysis: The total debt represents 20.20 percent of Zimmer Holdings’s assets and the total debt in relation to the equity amounts to 31.07 percent. Due to the financial situation, a return on equity of 13.28 percent was realized by Zimmer Holdings. Twelve trailing months earnings per share reached a value of $4.06. Last fiscal year, Zimmer Holdings paid $0.54 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 20.83, the P/S ratio is 3.14 and the P/B ratio is finally 2.44. The dividend yield amounts to 0.96 percent and the beta ratio has a value of 1.18.

Dr. Reddy's Laboratoires (RDY) has a market capitalization of $6.33 billion. The company employs 16,617 people, generates revenue of $1.911 billion and has a net income of $275.74 million. Dr. Reddy's Laboratoires’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $434.75 million. The EBITDA margin is 22.75 percent (the operating margin is 18.16 percent and the net profit margin 14.43 percent).

Financial Analysis: The total debt represents 25.82 percent of Dr. Reddy's Laboratoires’s assets and the total debt in relation to the equity amounts to 50.30 percent. Due to the financial situation, a return on equity of 25.71 percent was realized by Dr. Reddy's Laboratoires. Twelve trailing months earnings per share reached a value of $1.62. Last fiscal year, Dr. Reddy's Laboratoires paid $0.25 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 23.04, the P/S ratio is 3.34 and the P/B ratio is finally 5.27. The dividend yield amounts to 0.71 percent and the beta ratio has a value of 1.04.

Mindray Medical International (MR) has a market capitalization of $4.85 billion. The company employs 7,500 people, generates revenue of $1.060 billion and has a net income of $182.28 million. Mindray Medical International’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $233.74 million. The EBITDA margin is 22.05 percent (the operating margin is 18.05 percent and the net profit margin 17.20 percent).

Financial Analysis: The total debt represents 7.75 percent of Mindray Medical International’s assets and the total debt in relation to the equity amounts to 10.81 percent. Due to the financial situation, a return on equity of 14.57 percent was realized by Mindray Medical International. Twelve trailing months earnings per share reached a value of $1.67. Last fiscal year, Mindray Medical International paid $0.40 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 24.68, the P/S ratio is 4.57 and the P/B ratio is finally 3.61. The dividend yield amounts to 1.22 percent and the beta ratio has a value of 1.23.

Take a closer look at the full list of healthcare dividend stocks with high beta's. The average P/E ratio amounts to 18.34 and forward P/E ratio is 14.71. The dividend yield has a value of 1.53 percent. Price to book ratio is 3.08 and price to sales ratio 1.73. The operating margin amounts to 14.69 percent and the beta ratio is 1.27. Stocks from the list have an average debt to equity ratio of 0.73.

Do you like this article? If yes, please support us and hit the button for a Facebook Like, make a tweet or post a comment in the Dividend Yield community! Thank you so much, we really appreciate it.

Related Stock Ticker Symbols:
HSKA, WCRX, HLS, MSA, CNMD, CRY, USPH, AET, HUM, MR, A, ZMH, RDY, XRAY, UHS, CI

Selected Articles:
· The Best Healthcare Dividend Stocks And Which Of Them Are The Cheapest
· 13 Highly Shorted Healthcare Dividend Stocks
· 20 Cheapest Healthcare Dividend Stocks
· 20 Best Yielding Healthcare Stocks Less Volatile Than The Market

*If you would like to receive more dividend stock ideas and the free Dividend Weekly, you should subscribe to my free e-mail list. Alternatively, you can follow me on Facebook or Twitter.


Stocks Discussed: HSKA, WCRX, HLS, MSA, CNMD, CRY, USPH, AET, HUM, MR, A, ZMH, R,
Rate this post:

Rating: 1.5/5 (2 votes)





Sorry, only registered users may post in this forum.

Please Login if you have an account or Create a Free Account if you don't
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK
Email Hide