If any investor has stood the test of time, it is Warren Buffett, and with good reason. For years, the so-called Oracle of Omaha has had a rock-star-like presence in the investing world. His annual Berkshire Hathaway shareholders meeting draws thousands of loyal fans who are investors. Known for his long buy and hold strategies, and his massive portfolio of public and private holdings, he remains one of the preeminent investors in the world, and the long-term results are staggering.
We decided to take a look into his Berkshire Hathaway portfolio for companies in the health care sector that not only look poised to do very well this year but pay dependable dividends. We found 10 that look like ideal stocks for investors to consider now, especially in a very volatile and nervous market. While interest rates are poised to move higher this year, these companies should not be damaged by the increase, and some actually may benefit.
Abbott Laboratories
Large-cap pharmaceutical stocks always tend to hold up well in distressed markets, and this blue chip is among the best. Abbott Laboratories (NYSE: ABT) discovers, develops, manufactures and sells health care products worldwide.
Its Established Pharmaceutical Products segment offers branded generic pharmaceuticals to treat pancreatic exocrine insufficiency; irritable bowel syndrome or biliary spasm; intrahepatic cholestasis or depressive symptoms; gynecological disorders; hormone replacement therapy; dyslipidemia; hypertension; hypothyroidism; Ménière’s disease and vestibular vertigo; pain, fever and inflammation; migraines; anti-infective clarithromycin; cardiovascular and metabolic products; and influenza vaccines, as well as to regulate physiological rhythm of the colon.
The Diagnostic Products segment offers laboratory systems in the areas of immunoassay, clinical chemistry, hematology and transfusion; molecular diagnostics systems that automate the extraction, purification and preparation of DNA and RNA from patient samples, as well as detect and measure infectious agents; point of care systems; cartridges for testing blood; rapid diagnostics lateral flow testing products; molecular point-of-care testing for HIV, SARS-CoV-2, influenza A and B, RSV and strep A; cardiometabolic test systems; drug and alcohol test, and remote patient monitoring and consumer self-test systems; and informatics and automation solutions for use in laboratories.
Shareholders receive a 1.50% dividend. Abbott Laboratories stock has traded between $105.36 and $142.60 a share over the past year. The consensus target is $143.72. The final trade for Friday was reported at $125.49.
24/7 Wall St.Amgen
This biotech giant remains a top stock for investors to buy, and it has sold off since last summer and offers one of the best entry points in years. Amgen Inc. (NASDAQ: AMGN) discovers, develops, manufactures and delivers human therapeutics worldwide. It focuses on inflammation, oncology/hematology, bone health, cardiovascular disease, nephrology and neuroscience.
The company’s five key marketed products are among the top-selling pharmaceutical products in the world, with the company having expected collective revenues of more than $27 billion in 2022.
Shareholders receive a 3.40% dividend. The shares have traded in a 52-week range of $198.64 to $261.00, and Amgen stock has a consensus target of $247.04. The final trade for Monday came in at $228.20.
Baxter International
This is a strong health care play, especially with hospitals and doctors starting non-COVID-19-related procedures back up in a big way. Baxter International Inc. (NYSE: BAX) provides a portfolio of renal and hospital products.
Its Renal segment provides products and services to treat end-stage renal disease, irreversible kidney failure and acute kidney therapies. This segment offers a comprehensive portfolio to meet the needs of patients across the treatment continuum, including technologies and therapies for peritoneal dialysis, in-center hemodialysis (HD), home HD, continuous renal replacement therapy and additional dialysis services.
The Hospital Products segment manufactures intravenous (IV) solutions and administration sets, premixed drugs and drug-reconstitution systems, pre-filled vials and syringes for injectable drugs, IV nutrition products, infusion pumps, inhalation anesthetics and biosurgery products. This segment also provides products and services related to pharmacy compounding, drug formulation and packaging technologies.
Shareholders receive a 1.28% dividend. Over the past 52 weeks, the stock has traded between $73.12 and $89.70. The consensus price objective is $97.80, and Baxter stock closed Friday trading at $85.91.
24/7 Wall St.Cerner
Many on Wall Street feel the growth potential of this solid health care company is not appreciated. Cerner Corp. (NASDAQ: CERN) provides health care information technology solutions and tech-enabled services in the United States and internationally.
It offers Cerner Millennium architecture, a person-centric computing framework, which includes clinical, financial and management information systems that allow providers to access an individual’s electronic health record (EHR) at the point of care and organizes and delivers information for physicians, nurses, laboratory technicians, pharmacists, front- and back-office professionals and consumers.
Cerner also provides HealtheIntent platform, a cloud-based platform to aggregate, transform and reconcile data across the continuum of care. Its CareAware is an EHR agnostic platform that facilitates connectivity of health care devices to EHRs. In addition, the company offers a portfolio of clinical and financial health care information technology solutions, as well as departmental and care coordination solutions.
Further, it provides tech-enabled services, such as implementation and training, remote hosting, operational management services, revenue cycle services, support and maintenance, health care data analysis, real-world evidence, clinical process optimization, transaction processing, employer health centers, employee wellness programs and third-party administrator services, as well as complementary hardware and devices for third parties.
Investors in Cerner stock receive a 1.17% dividend. The 52-week trading range is $67.96 to $93.44, and the consensus target price is $91.38. The stock closed close to that high water mark on Friday at $91.97.
Eli Lilly
This large cap pharmaceutical stock with solid upside potential is a great pick for conservative investors. Eli Lilly and Co. (NYSE: LLY) is a global health care company with numerous core products in a number of primary-care pharmaceutical markets. The company generates revenues from its pharmaceutical product and animal health segments.
The product portfolio includes Zyprexa (for schizophrenia and bipolar disorder), Gemzar (pancreatic cancer), Evista (osteoporosis), Cymbalta (depression), Cialis (erectile dysfunction), Strattera (attention deficit hyperactivity disorder), Erbitux (cancer) and Alimta (chemotherapy). Eli Lilly also has a strong presence in the diabetes market.
Shareholders receive a 1.66% dividend. Eli Lilly stock has traded between $178.58 and $283.90 a share over the past year, and it has a $293.31 consensus target. The last trade on Friday was reported at $235.74.
Merck
This remains a leading health care stock for conservative investors. Merck & Co. Inc. (NYSE: MRK) offers therapeutic and preventive agents to treat cardiovascular issues, type 2 diabetes, asthma, nasal allergy symptoms, allergic rhinitis, chronic hepatitis C virus, HIV-1 infection, fungal infections, intra-abdominal infections, hypertension, arthritis and pain, inflammatory, osteoporosis, male pattern hair loss and fertility diseases.
The company also provides neuromuscular blocking agents for use in surgery, anti-bacterial products for skin and skin structure infections, cholesterol modifying medicines, non-sedating antihistamine and vaginal contraceptive products.
Investors receive a 3.60% dividend. The 52-week trading range is $68.44 to $91.40, and Merck stock has a consensus target of $92.58. That is well above the Friday closing print of $76.64.
Pfizer
This top pharmaceutical stock was one of the big winners in the COVID-19 vaccine race, and it could also see an increase in demand due to the new variant. Pfizer Inc. (NYSE: PFE) is a global biopharmaceutical company with a diversified portfolio of products and pipeline candidates.
Pfizer is one of the largest pharmaceutical companies in the world as measured by market capitalization and revenue, and it is a component of the Dow Jones industrial average. The company’s commercial operations are divided into two business segments: Innovative Health and Essential Health.
Shareholders receive a 3.15% dividend. The 52-week trading range for the company is $33.36 to $61.71. The consensus price target is $60.21. Pfizer stock ended Friday’s session at $50.78.
Quest Diagnostics
With an aging population, this may be an even safer way for investors to play health care. Quest Diagnostics Inc. (NYSE: DGX) is the largest provider of clinical diagnostic testing and related services in the United States, delivered through a national network of full-service clinical laboratories and over 2,200 patient service centers.
The company looks to be on track for at least 1% of incremental sales growth from mergers and acquisitions this year, and some on Wall Street feel there is a potential for additional acquisitions that could boost the second-half outlook. Quest has indicated the first tranche of the anticipated United Healthcare share gain will happen quickly, but that a significant part of the volume build will span going forward.
Investors receive a 1.99% dividend. Over the past year, the shares have traded between $113.36 and $174.16. Quest Diagnostics stock has a $157.33 consensus price target. The shares were last seen Friday at $132.37.
24/7 Wall St.Stryker
This leading medical devices company is a big beneficiary in the aging of America thesis. Stryker Corp. (NYSE: SYK) operates through three segments, including its Orthopedics segment, which provides implants for use in hip and knee joint replacements and in trauma and extremities surgeries.
The MedSurg segment offers surgical equipment and surgical navigation systems, endoscopic and communications systems, patient handling, emergency medical equipment and intensive care disposable products, reprocessed and remanufactured medical devices, and other medical device products that are used in various medical specialties.
The Neurotechnology and Spine segment provides neurotechnology products, including those used for minimally invasive endovascular techniques; products for brain and open skull based surgical procedures; orthobiologic and biosurgery products, such as synthetic bone grafts and vertebral augmentation products; and minimally invasive products for the treatment of acute ischemic and hemorrhagic stroke.
Shareholders receive a 1.10% dividend. Over the past year, the stock has traded between $227.84 and $281.16 a share. It has a consensus price objective of $283.64. Stryker stock Friday’s final trade came in at $251.65.
UnitedHealth
A whopping 45% of fund managers recently surveyed have bought shares of this company. UnitedHealth Group Inc. (NYSE: UNH) operates through four the following four segments.
Its UnitedHealthcare segment offers consumer-oriented health benefit plans and services for national employers, public sector employers, midsized employers, small businesses and individuals; health and well-being services to individuals age 50 and older, addressing their needs for preventive and acute health care services, as well as services dealing with chronic disease and other specialized issues for older individuals; and Medicaid plans, Children’s Health Insurance Program, and health care programs; and health and dental benefits.
The OptumHealth segment provides access to networks of care provider specialists, health management services, care delivery, consumer engagement and financial services. This segment serves individuals through programs offered by employers, payers, government entities and directly with the care delivery systems.
The OptumInsight segment offers software and information products, advisory consulting arrangements, and services outsourcing contracts to hospital systems, physicians, health plans, governments, life sciences companies and other organizations.
OptumRx is the segment that provides pharmacy care services and programs, including retail network contracting, home delivery, specialty and compounding pharmacy, and purchasing and clinical. It also develops programs in areas such as step therapy, formulary management, drug adherence and disease/drug therapy management.
Shareholders are paid a 1.21% dividend. UnitedHealth stock has a 52-week trading range of $320.35 to $509.23 and a consensus target of $528.89. The stock was last seen Friday at $478.13.
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