While many investment professionals suggest short Treasury paper and money markets, healthcare is the place in 2024 for long-term investors looking for growth and income. Demand is growing as the country ages; pricing remains solid, 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. Six companies that are all excellent players in the industry came up, two of which are top European companies, and all make good sense for growth and income investors looking for solid total returns.
Amgen
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This biotech giant remains a top stock for investors to buy and pays a solid 3.13% dividend. 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 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 the treatment of 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
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This company is trading a very reasonable 11 times estimated 2023 earnings and pays a rich 3.83% 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
- 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 the treatment of liver diseases
It also offers Yescarta, Tecartus, Trodelvy, and Zydelig products for treating hematology, oncology, and cell therapy patients.
In addition, Gilead provides Letairis, an oral formulation for treating pulmonary arterial hypertension; Ranexa, an oral formulation for treating chronic angina; and AmBisome, a liposomal formulation for treating severe invasive fungal infections.
Gilead Sciences, Inc. has collaboration agreements with
- Arcus Biosciences
- Pionyr
- Tizona
- Tango Therapeutics
- Jounce Therapeutics
- Galapagos; Janssen
- Japan Tobacco
- Gadeta
- Bristol-Myers Squibb Company (NYSE: BMY); Merck and Novo Nordisk A/S (NYSE: NVO)
Merck
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This company remains a leading healthcare stock for conservative investors, paying a 3.08% dividend. Merck & Co. Inc. (NYSE: MRK) is a global healthcare company.
It operates through two segments:
- Pharmaceutical
- 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
- Retailers
- Hospitals
- Government agencies
- Managed healthcare providers
- Pharmacy benefit managers
- Physicians
- Physician distributors
- Veterinarians
- Animal producers.
The company collaborates with:
- AstraZeneca PLC (NYSE: AZN)
- Bayer AG
- Eisai Co., Ltd.
- Ridgeback Biotherapeutics
- Gilead Sciences, Inc. to jointly develop and commercialize long-acting treatments for HIV
Novartis AG
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This company is among the world’s largest pharmaceutical drug makers by sales and remains a top international pick, paying a 3.53% dividend. Novartis AG (NYSE: NVS) researches, develops, manufactures, and markets healthcare products in Switzerland and internationally.
The company operates through two segments:
- Innovative Medicines
- Sandoz
The Innovative Medicines segment offers prescription medicines for patients and physicians. It also provides cardiovascular, ophthalmology, neuroscience, immunology, hematology, and solid tumor products.
The Sandoz segment develops, manufactures, and markets finished dosage forms of small molecule pharmaceuticals to third parties.
Novartis also prodices:
- Protein- or other biotechnology-based products
- Biosimilars,
- Biotechnology manufacturing services
- Anti-infectives, such as active pharmaceutical ingredients and intermediates, primarily antibiotics.
Novartis AG has a license and collaboration agreement with Alnylam Pharmaceuticals to develop, manufacture, and commercialize inclisiran, a therapy to reduce LDL cholesterol.
Pfizer
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This top pharmaceutical stock was one of the biggest winners in the ongoing COVID-19 vaccine sweepstakes, but as sales have slowed to a trickle, the stock got crushed. Pfizer Inc. (NYSE: PFE) discovers, develops, manufactures, markets, distributes, and sells biopharmaceutical products worldwide and pays investors a fat 5.60% 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
- COVID-19 under the Comirnaty/BNT162b2, Nimenrix, FSME/IMMUN-TicoVac, Trumenba, and the Prevnar family brands
- Biosimilars for chronic immune and inflammatory diseases under the Xeljanz, Enbrel, Inflectra, Eucrisa/Staquis, and Cibinqo brands
- Amyloidosis, hemophilia, and endocrine diseases under the Vyndaqel/Vyndamax, BeneFIX, and Genotropin brands
Sanofi
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This is another top pharmaceutical company in Europe, trading reasonably and paying shareholders a rich 4.04% dividend. Sanofi (NASDAQ: 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, and
- Consumer Healthcare
The company provides specialty care products, including
- Human monoclonal antibodies
- Products for multiple sclerosis, neurology, other inflammatory diseases,
- Immunology
- Rare diseases
- Oncology
- Rare blood disorders
- Medicines for diabetes and cardiovascular and established prescription products
- Poliomyelitis, pertussis, Hib pediatric vaccines and influenza, adult booster, meningitis, and travel and endemic vaccines
In addition, the company 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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