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My 4 Favorites From The 20 Cheapest Healthcare Dividend Stock List

Healthcare dividend stocks with low forward P/E ratios originally published at "long-term-investments.blogspot.com".

Wow, the stock market rises from month to month. The negative thing is that stock prices rise faster than the earnings and therefore the stocks are getting more expensive. This is a development which is still healthy because of the low yielding bond market. But it’s not sustainable if the interest rates rise. Everybody can imagine what would happen if the Fed hiked its rates.

So, my major screening focus goes to cheap stocks, stocks with a low price to earnings ratio. Below is a list of the 20 cheapest healthcare dividend stocks with a forward P/E of less than 15. Health care plans companies are currently the cheapest choice in the list. Two high-yields are part of the results and fifteen companies are recommended to buy.

Here are my favorite stocks:

Pfizer (PFE) has a market capitalization of $207.76 billion. The company employs 91,500 people, generates revenue of $58.986 billion and has a net income of $9.518 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $20.249 billion. The EBITDA margin is 34.33% (the operating margin is 20.48% and the net profit margin 16.14%).

Financial Analysis: The total debt represents 20.16% of the company’s assets and the total debt in relation to the equity amounts to 46.10%. Due to the financial situation, a return on equity of 11.62% was realized. Twelve trailing months earnings per share reached a value of $1.41. Last fiscal year, the company paid $0.88 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 20.45, the P/S ratio is 3.52 and the P/B ratio is finally 2.59. The dividend yield amounts to 3.32% and the beta ratio has a value of 0.76.

UnitedHealth Group (UNH) has a market capitalization of $61.21 billion. The company employs 133,000 people, generates revenue of $110.618 billion and has a net income of $5.526 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $10.563 billion. The EBITDA margin is 9.55% (the operating margin is 8.37% and the net profit margin 5%).

Financial Analysis: The total debt represents 20.71% of the company’s assets and the total debt in relation to the equity amounts to 53.74%. Due to the financial situation, a return on equity of 18.58 percent was realized. Twelve trailing months earnings per share reached a value of $5.13. Last fiscal year, the company paid $0.80 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 11.64, the P/S ratio is 0.55 and the P/B ratio is finally 1.95. The dividend yield amounts to 1.42 percent and the beta ratio has a value of 0.90.

Zimmer Holdings (ZMH) has a market capitalization of $12.92 billion. The company employs 9,300 people, generates revenue of $4.471 billion and has a net income of $752.90 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1.410 billion. The EBITDA margin is 31.54% (the operating margin is 23.42% and the net profit margin 16.84%).

Financial Analysis: The total debt represents 20.20% of the company’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% was realized. Twelve trailing months earnings per share reached a value of $4.39. Last fiscal year, the company 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 17.17, the P/S ratio is 2.81 and the P/B ratio is finally 2.20. The dividend yield amounts to 1.06 percent and the beta ratio has a value of 1.14.

Take a closer look at the full list of the cheapest healthcare dividend stocks. The average P/E ratio amounts to 13.12 and forward P/E ratio is 9.44. The dividend yield has a value of 2.66%. Price to book ratio is 3.03 and price to sales ratio 1.63. The operating margin amounts to 20.66% and the beta ratio is 0.85. Stocks from the list have an average debt to equity ratio of 0.51.

Related stock ticker symbols:

PDLI, WCRX, QCOR, TEVA, HLF, NATR, WLP, HUM, CI, AET, UNH, STJ, AZN, ENSG, DGX, IVC, MRK, ZMH, PFE, MDT

Selected Articles:

· 20 Best Yielding Healthcare Stocks Less Volatile Than The Market

· 20 Of The Best Yielding Healthcare Growth Stocks For The Next Years

· Most Recommended Healthcare Stocks For 2013

· My Best Healthcare Stock Picks For 2013

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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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