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Alberto Abaterusso
Alberto Abaterusso
Articles (1345) 

3 Health Care Stocks With a Superior Forward Dividend

These securities are beating the S&P 500's yield

January 23, 2019 | About:

The following health care companies have a compelling forward dividend yield, one that is beating the dividend yield of the S&P 500 Index by nearly 200 basis points. The dividend yield of the benchmark for the U.S. equities market was 2.04% on Tuesday.

The closing share price of Diversicare Healthcare Services Inc. (NASDAQ:DVCR) was $3.25 on Tuesday. Following a 64% decline for the 52 weeks through Jan. 22, the forward dividend yield went up to 6.67%, outperforming the industry by 235.2%. The stock has a market capitalization of $21.2 million and a price-sales ratio of 0.04 versus an industry median of 1.7.

The share price is slightly below the 50-day simple moving average line and far below the 100- and 200-day lines. The 52-week range is $2.14 to $9.61.

Diversicare provides skilled nursing health care services.

GuruFocus gave the company a financial strength rating of 4 out of 10 and a profitability and growth rating of 6 out of 10.

Patterson Companies Inc. (NASDAQ:PDCO) closed at $22.03 per share on Tuesday. For the 52 weeks through Jan. 22, the share price declined 41%. The forward dividend yield is 4.67%. The stock has a market capitalization of about $2.09 billion, a price-book ratio of 1.43 versus an industry median of 2.12 and a price-earnings ratio of 13.21 versus an industry median of 19 and a price-sales ratio of 0.37 compared to an industry median of 0.91.

The share price is below the 200-, 100- and 50-day simple moving average lines. The closing price on Jan. 22 falls with the 52-week range of $18.94 to $38.20.

Patterson Companies sells dental and animal health products in North America and the United Kingdom.

GuruFocus rated Patterson Companies’ financial strength 6 out of 10 and its profitability and growth 7 out of 10.

During the third quarter, Joel Greenblatt started a position, purchasing 287,807 shares. Barrow, Hanley, Mewhinney & Strauss increased its holding by 91.96% to 5,968 shares. Ken Fisher (Trades, Portfolio) reduced his position by 0.29% to 106,596 shares, Mario Gabelli (Trades, Portfolio) decreased his holding by 2.18% to 2,080,860 shares and Charles Brandes (Trades, Portfolio) reduced his holding by 6.41% to 11,679 shares.

The recommendation rating is 3 out of 5, and the average target price is $22.22 per share.

Psychemedics Corp.'s (NASDAQ:PMD) share price was $17.6 at close on Tuesday. The forward dividend yield is 3.97% versus an industry median of 1.10%. For the 52 weeks through Jan. 22, the stock has tumbled 16%. The market capitalization is approximately $97.09 million, the price-book ratio is 5.26 versus an industry median of 4.02, the price-earnings ratio is 16.19 versus an industry median of 35 and the price-sales ratio is 2.31 compared to an industry median of 3.81.

The share price is below the 200-day simple moving average line, but above the 50- and 100-day lines. The closing price on Tuesday was 26.3% above the 52-week low of $13.94 and 26.8% below the 52-week high of $22.31.

Psychemedics provides drug testing services in the U.S. and internationally.

GuruFocus has assigned the company a financial strength rating of 7 out of 10 and a profitability and growth rating of 8 out of 10.

Disclosure: I have no positions in any securities mentioned in this article.

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About the author:

Alberto Abaterusso
If somebody asks what being a value investor means, Alberto Abaterusso would answer, “The value investor is not just the possessor of the security that represents the company, but he is the owner of that company. As an owner of the company the value investor is actively involved in the dynamics of that company and his first concern is how to have sales progressively growing. Also, the value investor is probably one of the most demanding persons in the world concerning sales.”

Abaterusso is a freelance writer based in The Netherlands. He primarily writes about gold, silver and precious metals mining stocks. His articles have also been widely linked by popular sites, including MarketWatch, Financial Times, 24hGold, Investopedia, Financial.org, CNBS, MSN Money, Zachs, Reuters and others. Alberto holds an MBA from Università degli Studi di Bari (Italy), Aldo Moro.

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