Healthcare Business

Top Strategist Says Health Care Could Rule in 2022: 5 Dividend Winners


This is among the world’s largest pharmaceutical drug makers by sales and remains a top international pick across Wall Street. Novartis AG (NYSE: NVS) develops, manufactures and markets a range of health care products worldwide.

Novartis operates through three segments: Pharmaceuticals, Alcon and Sandoz. The Pharmaceuticals segment offers patented prescription medicines for oncology, neuroscience, retina, immunology and dermatology, respiratory, cardio-metabolic, established medicines and cell and gene therapies. Key products include Cosentyx (for psoriasis and others), Entresto (heart failure), Lucentis (wet macular degeneration) and Gilenya (multiple sclerosis).

The company recently acquired Arctos Medical, adding a preclinical optogenetics-based AAV gene therapy program and Arctos’s proprietary technology to its ophthalmology portfolio. Arctos developed its technology as a potential method for treating inherited retinal dystrophies and other diseases that involve photoreceptor loss, such as age-related macular degeneration. Arctos’s proprietary, light-sensitive optogene is delivered to specific retinal cells using gene therapy, thus turning the targeted cells into replacement photoreceptor-like cells.

Investors receive a 3.93% dividend. BofA Securities has set a $100 price objective. The consensus target for Novartis stock is higher at $104, and Tuesday’s close was at $82.67 per share.

Patterson Companies

This off-the-radar health care idea has very solid upside potential. Patterson Companies Inc. (NASDAQ: PDCO) is one of the largest distributors of dental and veterinary, including both companion animal and production animal, supplies and equipment in the United States.

The company supplements its core logistics functions with additional value-added services to its primarily fragmented customer base. In September, the company reported outstanding fiscal first-quarter adjusted earnings that were better than analysts projected. Sales for the quarter ended July 31 was $1.61 billion, up strongly from a year earlier and topping consensus estimates. Looking ahead, the medical supplies maker raised its full-year fiscal 2022 adjusted EPS guidance.

Shareholders receive a 3.13% dividend. The BofA Securities price target for Patterson Companies is $37. The consensus target is $35.30, and shares closed most recently at $32.61.

Most Wall Street strategists see tepid single-digit percentage gains for 2022, which, as we noted, makes the case for dependable dividends even more important. Plus, all these top stocks have been hit reasonably hard and are offering tremendous entry points. Investors nervous about the potential for a big correction in 2022 can feel comfortable owning any of these stocks now.

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