4/01/2013

20 Best Yielding Healthcare Stocks With A Lower Volatility Than The Market

Healthcare dividend stocks that are less volatile than the market originally published at "long-term-investments.blogspot.com". This month I like to show you the best yielding large cap stocks from all sectors that are less volatile than the market. I will start today with the healthcare sector.

It’s very important when you invest money that you have a view on your risk exposure. It doesn’t make sense in my view to enter big risks without a higher return. Every loss you can avoid is also a return you don’t need to work out.

Linked is a sheet of the 20 best yielding healthcare dividend stocks with a market capitalization of more than USD 10 billion as well as a beta ratio under one. Two of the results are High-Yields and fourteen are recommended to buy. The majored drug manufactures is still the dominating group in the screen, followed by a gaining medical instruments and supplies industry.

Here are my favorite stocks:
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Baxter International (NYSE:BAX) has a market capitalization of $39.47 billion. The company employs 51,000 people, generates revenue of $14.190 billion and has a net income of $2.326 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3.741 billion. The EBITDA margin is 26.36 percent (the operating margin is 20.36 percent and the net profit margin 16.39 percent).

Financial Analysis: The total debt represents 29.08 percent of the company’s assets and the total debt in relation to the equity amounts to 85.47 percent. Due to the financial situation, a return on equity of 34.40 percent was realized. Twelve trailing months earnings per share reached a value of $4.18. Last fiscal year, the company paid $1.57 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 17.29, the P/S ratio is 2.77 and the P/B ratio is finally 5.69. The dividend yield amounts to 2.49 percent and the beta ratio has a value of 0.51.

Earnings and Dividends of Baxter

Stryker Corporation (NYSE:SYK) has a market capitalization of $24.84 billion. The company employs 21,241 people, generates revenue of $8.657 billion and has a net income of $1.298 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2.227 billion. The EBITDA margin is 25.72 percent (the operating margin is 20.11 percent and the net profit margin 14.99 percent).

Financial Analysis: The total debt represents 12.97 percent of the company’s assets and the total debt in relation to the equity amounts to 20.31 percent. Due to the financial situation, a return on equity of 15.95 percent was realized. Twelve trailing months earnings per share reached a value of $3.39. Last fiscal year, the company paid $0.85 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 19.28, the P/S ratio is 2.85 and the P/B ratio is finally 2.89. The dividend yield amounts to 1.62 percent and the beta ratio has a value of 0.92.

Earnings and Dividends of Stryker

Covidien (NYSE:COV) has a market capitalization of $31.95 billion. The company employs 43,400 people, generates revenue of $11.852 billion and has a net income of $1.902 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3.044 billion. The EBITDA margin is 25.68 percent (the operating margin is 20.34 percent and the net profit margin 16.05 percent).

Financial Analysis: The total debt represents 22.64 percent of the company’s assets and the total debt in relation to the equity amounts to 47.70 percent. Due to the financial situation, a return on equity of 18.66 percent was realized. Twelve trailing months earnings per share reached a value of $3.93. Last fiscal year, the company paid $0.94 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 17.20, the P/S ratio is 2.70 and the P/B ratio is finally 3.03. The dividend yield amounts to 1.54 percent and the beta ratio has a value of 0.88.

Earnings and Dividends of Covidien

Take a closer look at the full list of the best yielding healthcare stocks that are less volatile than the market. The average P/E ratio amounts to 17.72 and forward P/E ratio is 12.83. The dividend yield has a value of 3.05 percent. Price to book ratio is 3.52 and price to sales ratio 2.70. The operating margin amounts to 20.23 percent and the beta ratio is 0.66. Stocks from the list have an average debt to equity ratio of 0.68.

Here is the full table with some fundamentals (TTM):


20 Best Yielding Healthcare Stocks With Low Beta Ratios (Click to enlarge)

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Related stock ticker symbols:
AZN, GSK, MRK, NVS, LLY, BMY, PFE, SNY, JNJ, SNN, TEVA, STJ, BAX, WLP, MDT, BDX, AMGN, SYK, ABT, COV

Selected Articles:

*I am long GSK, AZN, JNJ, SNN, BAX, MDT, BDX and SYK. I receive no compensation to write about these specific stocks, sector or theme. I don't plan to increase or decrease positions or obligations within the next 72 hours.

For the other stocks: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I receive no compensation to write about any specific stock, sector or theme.

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