While many Wall Street firms are suggesting short Treasury paper and money markets now, for long-term investors looking for growth and income, healthcare is the place to be for the rest of 2023 and likely 2024. Demand is growing as the country ages; pricing remains solid and plain and straightforward; it is one sector that never goes out of style as cyclical swings don’t hit it.
We screened our 24/7 Wall St. healthcare research database, looking for the highest-paying dividend leaders rated buy across Wall Street. Five companies that are all excellent players in the industry came up, and all make good sense for growth and income investors looking for solid total return ideas.
Amgen
This biotech giant remains a top stock for investors to buy and a safer way to play the massive potential growth in biosimilars. 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. Investors are paid a solid 3.15% dividend.
The company’s products include:
- Enbrel to treat plaque psoriasis, rheumatoid arthritis, and psoriatic arthritis
- Neulasta reduces the chance of infection due to a low white blood cell count in patients with cancer
- Prolia to treat postmenopausal women with osteoporosis
- Xgeva for skeletal-related events prevention
- Otezla for treating adult patients with plaque psoriasis, psoriatic arthritis, and oral ulcers associated with Behcet’s disease
- Aranesp to treat a lower-than-normal number of red blood cells and anemia
- KYPROLIS to treat patients with relapsed or refractory multiple myeloma
- Repatha reduces the risks of myocardial infarction, stroke, and coronary revascularization
Gilead Sciences
This company is trading at a very reasonable 11 times estimated 2023 earnings, has big-time upside potential, and a rich 3.70% dividend. Gilead Sciences, Inc. (NASDAQ: GILD), a research-based biopharmaceutical company, discovers, develops, and commercializes medicines for unmet medical needs in the United States, Europe, and internationally.
The company provides
- Biktarvy, Genvoya, Descovy, Odefsey, Truvada, Complera/ Eviplera, Stribild, and Atripla products for the treatment of human immunodeficiency virus (HIV) infection
- Veklury, an injection for intravenous use for the treatment of coronavirus disease 2019
- Epclusa, Harvoni, Vosevi, Vemlidy, and Viread for treating liver diseases
- Yescarta, Tecartus, Trodelvy, and Zydelig products for treating hematology, oncology, and cell therapy patients
In addition, Gilead provides Letairis, an oral formulation for the treatment of pulmonary arterial hypertension; Ranexa, an oral formulation for the treatment of chronic angina; and AmBisome, a liposomal formulation for the treatment of severe invasive fungal infections.
Merck
This company remains a leading healthcare stock for conservative investors who are paid a dependable 2.80% dividend. Merck & Co. Inc. (NYSE: MRK) is a healthcare company worldwide.
Merck operates through two segments: Pharmaceutical and Animal Health.
- The Pharmaceutical segment offers human health pharmaceutical products in oncology, hospital acute care, immunology, neuroscience, virology, cardiovascular, and diabetes, as well as vaccine products, such as preventive pediatric, adolescent, and adult vaccines.
- The Animal Health segment discovers, develops, manufactures, and markets veterinary pharmaceuticals, vaccines, and health management solutions and services, as well as digitally connected identification, traceability, and monitoring products.
Merck serves drug wholesalers and retailers, hospitals, and government agencies; managed health care providers, such as health maintenance organizations, pharmacy benefit managers, and other institutions; and physicians and physician distributors, veterinarians, and animal producers.
The company collaborates with AstraZeneca PLC, Bayer AG; Eisai Co., Ltd., Ridgeback Biotherapeutics; and Gilead Sciences, Inc. to jointly develop and commercialize long-acting treatments in HIV.
Pfizer
This top pharmaceutical stock was one of the biggest winners in the ongoing COVID-19 vaccine sweepstakes; with that revenue subsiding, the sellers have crushed the stock. Pfizer Inc. (NYSE: PFE) discovers, develops, manufactures, markets, distributes, and sells biopharmaceutical products worldwide. Investors with a long-time horizon will receive a massive 5.26% dividend.
- The company offers medicines and vaccines in various therapeutic areas, including cardiovascular metabolic and women’s health under the Premarin family and Eliquis brands.
- Biologics, small molecules, immunotherapies, and biosimilars under the Ibrance, Xtandi, Sutent, Inlyta, Retacrit, Lorbrena, and Braftovi brands
- Sterile injectable and anti-infective medicines and oral COVID-19 treatment under the Sulperazon, Medrol, Zavicefta, Zithromax, Vfend, Panzyga, and Paxlovid brands
Pfizer also provides medicines and vaccines in various therapeutic areas, such as pneumococcal disease, meningococcal disease, tick-borne encephalitis, and COVID-19.
- Under the Comirnaty/BNT162b2, Nimenrix, FSME/IMMUN-TicoVac, Trumenba
- Biosimilars for chronic immune and inflammatory diseases under the Xeljanz, Enbrel, Inflectra, Eucrisa/Staquis, and Cibinqo brands
- Amyloidosis, hemophilia, and endocrine disorders under the Vyndaqel/Vyndamax, BeneFIX, and Genotropin brands
Sanofi
This is a top pharmaceutical company in Europe, trading reasonably and paying a massive 4.20% dividend. Sanofi (NYSE: SNY) engages in the research, development, manufacture, and marketing of therapeutic solutions in the United States, Europe, and internationally.
Sanofi operates through three segments:
- Pharmaceuticals
- Vaccines
- Consumer Healthcare
The company provides specialty care products, including:
- Human monoclonal antibodies
- Products for multiple sclerosis, neurology, other inflammatory diseases, immunology, rare diseases, oncology, and rare blood disorders
- Medicines for diabetes and cardiovascular and established prescription products
- It also supplies poliomyelitis, pertussis, Hib pediatric vaccines, influenza, adult booster, meningitis, and travel and endemic vaccines.
In addition, Sanofi offers allergy, cough, cold, pain, digestive, and nutritional products; and other products, such as daily body lotions, anti-itch products, moisturizing and soothing lotions, and body and foot creams, as well as powders for eczema. It also has various pharmaceutical products and vaccines in the development stage.
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