Investing

7 Rock-Solid Healthcare Dividend Stocks to Buy in January

Lee Jackson

Published: January 6, 2024 9:10 am

Fourth-quarter earnings kick off in a big way in 7 to 10 days, and earnings at some of the biggest and best U.S. companies are likely expected to decline for the third quarter running. Many top analysts and strategists feel there is a good chance we could be in for a big-time earnings recession as 2024 progresses.

While many suggest short Treasury paper and money markets, for long-term investors looking for growth and income, healthcare is the place to be in 2024 after considerable underperformance last year. 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 often 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. Seven companies that are all excellent players in the industry came up, two of which are top European companies,

Amgen

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This biotech giant remains a top stock for investors to buy and pays an outstanding 3.12% 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

Bristol-Myers Squibb

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This top company remains a solid pharmaceutical stock to own long-term, offering an outstanding entry point and a massive 4.68% dividend. Bristol-Myers Squibb Company (NYSE: BMY) discovers, develops, licenses, manufactures, and markets pharmaceutical products worldwide.

The company offers products in hematology, oncology, cardiovascular, and immunology therapeutic classes.

The company’s products include:

• Revlimid, an oral immunomodulatory drug for the treatment of multiple myeloma
• Opdivo for anti-cancer indications
• Eliquis, an oral inhibitor indicated for the reduction in risk of stroke/systemic embolism in NVAF and for the treatment of DVT/PE
• Orencia for adult patients with active RA and psoriatic arthritis, as well as reducing signs and symptoms in pediatric patients with active polyarticular juvenile idiopathic arthritis

The company also provides:

• Sprycel for the treatment of Philadelphia chromosome-positive chronic myeloid leukemia
• Yervoy for the treatment of patients with unresectable or metastatic melanoma
• Abraxane, a protein-bound chemotherapy product
• Implicit for the treatment of multiple myeloma
• Reblozyl for the treatment of anemia 

Gilead Sciences

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This company trades a very reasonable 11.4 times estimated 2024 earnings and pays shareholders a 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
• Atripla products for the treatment of human immunodeficiency virus (HIV) infection
• Veklury, an injection for intravenous use, for the treatment of coronavirus disease
• Epclusa, Harvoni, Vosevi, Vemlidy, and Viread for the treatment of liver diseases
• Yescarta, Tecartus, Trodelvy, and Zydelig products for treating hematology, oncology, and cell therapy patients
• Letairis, an oral formulation for treating pulmonary arterial hypertension;
• Ranexa, an oral formulation for treating chronic angina
• AmBisome, a liposomal formulation for treating severe invasive fungal infections

Merck

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This company remains a leading healthcare stock for conservative investors and pays a 2.83% 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
• 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 and government agencies
• Managed health care providers, such as health maintenance organizations
• Pharmacy benefit managers
• Physicians,
• Physician distributors
• Veterinarians
• Animal producers.

Novartis AG

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This company is among the world’s largest pharmaceutical drug makers by sales and remains a solid dividend idea, yielding 3.47% Wall Street. 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
• Solid tumor products

The Sandoz segment develops, manufactures, and markets finished dosage forms of small molecule pharmaceuticals to third parties.

It also provides protein– or other biotechnology-based products, including biosimilars, biotechnology manufacturing services, and anti-infectives, such as active pharmaceutical ingredients and intermediates, primarily antibiotics.

Pfizer

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This top pharmaceutical stock was a massive winner in the COVID-19 vaccine sweepstakes but has been crushed as many are not getting boosters. Pfizer Inc. (NYSE: PFE) discovers, develops, manufactures, markets, distributes, and sells biopharmaceutical products worldwide and pays a 5.84% 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 at very reasonable levels and paying a solid 3.82% 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, 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, 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.

The company also offers products for:

• Allergy
• Cough
• Cold
• Pain digestive, and nutritional products
• Daily body lotions, anti-itch products, moisturizing and soothing lotions, and body and foot creams
• Powders for eczema.

With a possible recession on the way, consumers running out of savings, and the trajectory for the economy possibly the worst it’s been in years, it makes sense to move to healthcare as it remains resilient and could outperform the rest of the year and beyond.