The healthcare sector has a higher prevalence of companies with sustainable competitive advantages compared to other sectors which implies it may continue generating robust excess returns. When the economy is struggling and cyclical companies begin showing signs of weakness, investors often try to put their money into defensive companies in an effort to protect their portfolio during a downturn. Below is my list of huge dividend-paying stocks in the healthcare industry that continues to add value to my portfolio holdings.
Kewaunee Scientific Corporation (NASDAQ:KEQU)
KEQU has a decent dividend yield of 2.33% and is currently distributing 36.56% of profits to shareholders . In the case of KEQU, they have increased their dividend per share from $0.28 to $0.68 so in the past 10 years. During this period, the company has not missed a dividend payment – as you would expect from a company increasing their dividend. Comparing Kewaunee Scientific’s PE ratio against the US Medical Equipment industry draws favorable results, with the company’s PE of 17.2 being below that of its industry (34.6). Dig deeper into Kewaunee Scientific here.
Aceto Corporation (NASDAQ:ACET)
ACET has a wholesome dividend yield of 2.26% and has a payout ratio of 117.51% . ACET has increased its dividend from $0.2 to $0.26 over the past 10 years. To the enjoyment of shareholders, the company hasn’t missed a payment during this period. In the last few years, Aceto has sustained a positive EPS growth. It’s five year average earnings growth is 6.29%. Dig deeper into Aceto here.
National HealthCare Corporation (AMEX:NHC)
NHC has a nice dividend yield of 3.07% and is distributing 58.09% of earnings as dividends . NHC’s DPS have risen to $1.92 from $0.84 over a 10 year period. During this period, they haven’t missed a payment, as one would expect from a company increasing their dividend. When we compare National HealthCare’s PE ratio with its industry, the company appears favorable. The US Healthcare industry’s average ratio of 22.5 is above that of National HealthCare’s (19.5). More detail on National HealthCare here.
For more solid dividend payers to add to your portfolio, you can use our free platform to explore our interactive list of top dividend payers.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.