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12 Healthcare Dividend Stocks with Gaining Earnings Momentum

Growth stocks are wonderful especially if they are at the beginning of their growth path. Growth normally creates shareholder value and if the company doesn’t need much money to finance the growth, you can benefit already within the early stage.

In order to find some growth opportunities within the healthcare sector with current dividend payments, I screened the healthcare sector by stocks with a recent earnings growth of more than ten percent (past five years). In order to catch up only those stocks with a gaining earnings growth, I observed only stocks with a quarter-over-quarter sales and earnings per share growth of more than ten percent. Exactly 12 companies fulfilled these criteria. All of them are recommended to buy.

Here are my favorite stocks:

1. Novo Nordisk A/S (NVO)
has a market capitalization of $76.84 billion. The company employs 32,136 people, generates revenues of $11,901.27 million and has a net income of $3,066.89 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4,460.15 million. Because of these figures, the EBITDA margin is 37.48 percent (operating margin 33.72 percent and the net profit margin finally 25.77 percent).

The total debt representing 1.32 percent of the company’s assets and the total debt in relation to the equity amounts to 2.28 percent. Due to the financial situation, a return on equity of 45.95 percent was realized. Twelve trailing months earnings per share reached a value of $5.38. Last fiscal year, the company paid $2.51 in form of dividends to shareholders. Sales of NVO grew 12.38 percent quarter over quarter and earnings 22.13 percent.

Here are the price ratios of the company: The P/E ratio is 25.77, P/S ratio 5.50 and P/B ratio 11.51. Dividend Yield: 1.81 percent. The beta ratio is 0.55.

2. Herbalife (HLF) has a market capitalization of $8.00 billion. The company employs 5,100 people, generates revenues of $3,454.54 million and has a net income of $412.58 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $634.12 million. Because of these figures, the EBITDA margin is 18.36 percent (operating margin 16.28 percent and the net profit margin finally 11.94 percent).

The total debt representing 14.08 percent of the company’s assets and the total debt in relation to the equity amounts to 36.35 percent. Due to the financial situation, a return on equity of 78.78 percent was realized. Twelve trailing months earnings per share reached a value of $3.31. Last fiscal year, the company paid $0.73 in form of dividends to shareholders. Sales of HLF grew 19.80 percent quarter over quarter and earnings 28.17 percent.

Here are the price ratios of the company: The P/E ratio is 20.81, P/S ratio 2.33 and P/B ratio 14.23. Dividend Yield: 1.74 percent. The beta ratio is 1.58.

3. Stryker Corporation (SYK) has a market capitalization of $21.15 billion. The company employs 21,241 people, generates revenues 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. Because of these figures, the EBITDA margin is 26.09 percent (operating margin 20.30 percent and the net profit margin finally 16.19 percent).

The total debt representing 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 $3.46. Last fiscal year, the company paid $0.75 in form of dividends to shareholders. Sales of SYK grew 11.02 percent quarter over quarter and earnings 41.00 percent.

Here are the price ratios of the company: The P/E ratio is 16.05, P/S ratio 2.55 and P/B ratio 2.75. Dividend Yield: 1.53 percent. The beta ratio is 0.86.

4. Shire Plc (SHPGY) has a market capitalization of $17.77 billion. The company employs 5,251 people, generates revenues of $4,263.40 million and has a net income of $862.50 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,404.00 million. Because of these figures, the EBITDA margin is 32.93 percent (operating margin 26.02 percent and the net profit margin finally 20.23 percent).

The total debt representing 17.24 percent of the company’s assets and the total debt in relation to the equity amounts to 34.54 percent. Due to the financial situation, a return on equity of 30.69 percent was realized. Twelve trailing months earnings per share reached a value of $4.54. Last fiscal year, the company paid $0.40 in form of dividends to shareholders. Sales of SHPGY grew 22.66 percent quarter over quarter and earnings 53.31 percent.

Here are the price ratios of the company: The P/E ratio is 20.88, P/S ratio 4.25 and P/B ratio 5.58. Dividend Yield: 0.48 percent. The beta ratio is 0.77.

Take a closer look at the full table of healthcare dividend stocks with accelerated growth. The average price to earnings ratio (P/E ratio) amounts to 20.93 and forward P/E ratio is 15.77. The dividend yield has a value of 0.95 percent. Price to book ratio is 5.16 and price to sales ratio 3.22. The operating margin amounts to 20.15 percent. Sales increased 19.81 percent compared to the figures from the same quarter last year (16.53 percent 5-year average) and the earnings per share grew 52.07 percent quarter over quarter (25.07 percent 5-year average).

Related stock ticker symbols:

NVO, HLF, USPH, SYK, MR, MLAB, RDY, UHS, SHPGY, CMN, PRGO, COO

Selected Articles:

· 7 Highly Profitable Healthcare Dividend Stocks With Great Yields

· The Best Yielding Healthcare Dividend Stocks With Fastest Earnings Growth

· 15 Healthcare Dividend Stocks With Buy Or Better Recommendation

· 10 High Margin Healthcare Dividend Shares

About the author:

Dividend
I am a private full time investor searching for investments and investment ideas.

Visit Dividend's Website


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