Healthcare Business

5 Health Care Dividend Aristocrats to Buy for 2022 as Yields Plunge Once Again

Medtronic

This medical technology giant is a solid pick for investors looking for a safe position in the health care sector. Medtronic PLC (NYSE: MDT) develops, manufactures, distributes and sells device-based medical therapies to hospitals, physicians, clinicians and patients worldwide. It operates in four segments: Cardiac and Vascular Group, Minimally Invasive Therapies Group, Restorative Therapies Group and Diabetes Group.

The company announced in 2020 that Blackstone’s life sciences division will invest $337 million into the research and development of its diabetes device technologies. Under the terms of the agreement, Medtronic will receive funding for four diabetes R&D programs over the next several years. Medtronic’s engineering, clinical and regulatory teams will conduct the development work for the programs.

investors are paid a 2.36% dividend. The $145 Morgan Stanley price target compares to the $139.85 consensus target for Medtronic stock. Shares closed on Tuesday at $106.70.

Walgreens

This huge drugstore chain operator is a safe retail play for investors looking to add health care now. Walgreens Boots Alliance Inc. (NASDAQ: WBA) operates as a pharmacy-led health and beauty retail company. It operates through three segments.

The Retail Pharmacy USA segment sells prescription drugs and an assortment of retail products, including health, wellness, beauty, personal care, consumable, and general merchandise products through its retail drugstores. It also provides specialty pharmacy services and mail services; this segment operates nearly 10,000 retail stores under the Walgreens and Duane Reade brands in the United States; and six specialty pharmacies.

The Retail Pharmacy International segment sells prescription drugs; and health and wellness, beauty, personal care, and other consumer products through its pharmacy-led health and beauty stores and optical practices, as well as through boots.com and an integrated mobile application. This segment operated 4,428 retail stores under the Boots, Benavides, and Ahumada in the United Kingdom, Thailand, Norway, the Republic of Ireland, the Netherlands, Mexico, and Chile; and 550 optical practices, including 165 on a franchise basis.

The Pharmaceutical Wholesale segment engages in the wholesale and distribution of specialty and generic pharmaceuticals, health and beauty products, and home health care supplies and equipment, as well as provides related services to pharmacies and other health care providers.

Investors receive a 4.26% dividend. Baird has set a $68 price target on Walgreens Boots Alliance stock. The consensus target is just $53.02, and shares were last seen on Tuesday at $44.80.


For years, health care was one of the most dependable sectors, especially for investors who are more conservative. However, over the past five years, the sector, while delivering positive total returns, has massively underperformed some of the more popular sectors like technology. In fact, right now health care trades near the greatest valuation discount to the S&P 500 since 1990, making these stocks great ideas for the coming year.

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