16 Best Dividend Paying Healthcare Stocks

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Sep 03, 2012
Best Dividend Paying Healthcare Stocks Researched By “long-term-investments.blogspot.com”. The healthcare sector is a great investment field with fantastic growth potential. The whole sector has a total market capitalization of USD 43.18 trillion and summarizes 543 companies. The average dividend yield amounts to 3.34 percent and the P/E ratio is 22.59.

In order to find the best dividend paying stocks within the sector, I screened all companies with a positive dividend yield, great earnings per share growth of more than five percent and an operating margin over 15 percent. In order get the best results in terms of low debt and high cash, the debt to equity ratio should be under 0.5. Sixteen healthcare companies remain of which four yielding over three percent and thirteen are currently recommended to buy.

Here are my favorite stocks:

Covidien (COV) has a market capitalization of $26.91 billion. The company employs 41,300 people, generates revenue of $11,574.00 million and has a net income of $1,883.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,974.00 million. The EBITDA margin is 25.70 percent (operating margin 20.52 percent and net profit margin 16.27 percent).

Financial Analysis: The total debt represents 20.65 percent of the company’s assets and the total debt in relation to the equity amounts to 42.86 percent. Due to the financial situation, a return on equity of 20.04 percent was realized. Twelve trailing months earnings per share reached a value of $3.89. Last fiscal year, the company paid $0.83 in form of dividends to shareholders. The earnings are expected to grow by 10.34 percent for the next five years.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 14.41, P/S ratio 2.32 and P/B ratio 2.75. Dividend Yield: 1.61 percent. The beta ratio is 0.84.

Stryker Corporation (SYK) has a market capitalization of $20.26 billion. The company employs 21,241 people, generates revenue 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. The EBITDA margin is 26.09 percent (operating margin 20.30 percent and net profit margin 16.19 percent).

Financial Analysis: The total debt represents 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 $3.65. Last fiscal year, the company paid $0.75 in form of dividends to shareholders. The earnings are expected to grow by 10.84 percent for the next five years.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 14.60, P/S ratio 2.44 and P/B ratio 2.64. Dividend Yield: 1.60 percent. The beta ratio is 0.88.

Zimmer Holdings (ZMH) has a market capitalization of $10.79 billion. The company employs 8,500 people, generates revenue of $4,451.80 million and has a net income of $760.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,384.00 million. The EBITDA margin is 31.09 percent (operating margin 23.00 percent and net profit margin 17.07 percent).

Financial Analysis: The total debt represents 20.19 percent of the company’s assets and the total debt in relation to the equity amounts to 31.22 percent. Due to the financial situation, a return on equity of 13.49 percent was realized. Twelve trailing months earnings per share reached a value of $4.28. Last fiscal year, the company paid $0.00 in form of dividends to shareholders. The earnings are expected to grow by 10.35 percent for the next five years.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 14.44, P/S ratio 2.42 and P/B ratio 2.00. Dividend Yield: 1.17 percent. The beta ratio is 0.99.

The Cooper Companies (COO) has a market capitalization of $4.04 billion. The company employs 7,400 people, generates revenue of $1,330.84 million and has a net income of $175.43 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $309.22 million. The EBITDA margin is 23.23 percent (operating margin 15.86 percent and net profit margin 13.18 percent).

Financial Analysis: The total debt represents 14.50 percent of the company’s assets and the total debt in relation to the equity amounts to 19.64 percent. Due to the financial situation, a return on equity of 9.73 percent was realized. Twelve trailing months earnings per share reached a value of $4.18. Last fiscal year, the company paid $0.06 in form of dividends to shareholders. The earnings are expected to grow by 15.10 percent for the next five years.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 20.04, P/S ratio 3.03 and P/B ratio 2.07. Dividend Yield: 0.07 percent. The beta ratio is 0.86.

Take a closer look at the full table of the best dividend paying healthcare stocks. The average price to earnings ratio (P/E ratio) amounts to 18.65 and forward P/E ratio is 13.77. The dividend yield has a value of 2.05 percent. Price to book ratio is 3.83 and price to sales ratio 3.31. The operating margin amounts to 23.20 percent and the beta ratio is 0.91.

Related stock ticker symbols:

ALC, VIVO, SNY, JNJ, STE, RMD, TECH, COV, NVO, SYK, USPH, TRIB, ZMH, MR, AGN, COO

Selected Articles:

· Best Dividend Paying Stock List As Of September 2012

· 12 Healthcare Dividend Stocks With Highest Short Ratio

· 10 Best Yielding Drug Manufacturing Stocks

· The Best Yielding Large Cap Healthcare Dividend Stocks