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5/01/2013

20 Cheapest Healthcare Dividend Stocks

Healthcare dividend stocks with low forward P/E ratios originally published at "long-term-investments.blogspot.com". Wow, the stock market rises from month to month. The negative thing is that stock prices rise faster than the earnings and stocks getting therefore more expensive. This is a development which is still healthy because of the low yielding bond market. But it’s not sustainable if the interest rates rise. Everybody can imagine what happens if the Fed hikes its rates.

So, my major screening focus goes to cheap stocks, stocks with a low price to earnings ratio. Below is a list of the 20 cheapest healthcare dividend stocks with a forward P/E of less than 15. Health care plans companies are currently the cheapest choice in the list. Two High-Yields are part of the results and fifteen companies are recommended to buy.


Here are my favorite stocks:
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Pfizer (NYSE:PFE) has a market capitalization of $207.76 billion. The company employs 91,500 people, generates revenue of $58.986 billion and has a net income of $9.518 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $20.249 billion. The EBITDA margin is 34.33 percent (the operating margin is 20.48 percent and the net profit margin 16.14 percent).

Financial Analysis: The total debt represents 20.16 percent of the company’s assets and the total debt in relation to the equity amounts to 46.10 percent. Due to the financial situation, a return on equity of 11.62 percent was realized. Twelve trailing months earnings per share reached a value of $1.41. Last fiscal year, the company paid $0.88 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 20.45, the P/S ratio is 3.52 and the P/B ratio is finally 2.59. The dividend yield amounts to 3.32 percent and the beta ratio has a value of 0.76.


Long-Term Stock Price Chart Of Pfizer (PFE)
Long-Term Dividend Payment History of Pfizer (PFE)
Long-Term Dividend Yield History of Pfizer (PFE)

UnitedHealth Group (NYSE:UNH) has a market capitalization of $61.21 billion. The company employs 133,000 people, generates revenue of $110.618 billion and has a net income of $5.526 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $10.563 billion. The EBITDA margin is 9.55 percent (the operating margin is 8.37 percent and the net profit margin 5.00 percent).

Financial Analysis: The total debt represents 20.71 percent of the company’s assets and the total debt in relation to the equity amounts to 53.74 percent. Due to the financial situation, a return on equity of 18.58 percent was realized. Twelve trailing months earnings per share reached a value of $5.13. Last fiscal year, the company paid $0.80 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 11.64, the P/S ratio is 0.55 and the P/B ratio is finally 1.95. The dividend yield amounts to 1.42 percent and the beta ratio has a value of 0.90.


Long-Term Stock Price Chart Of UnitedHealth Group (UNH)
Long-Term Dividend Payment History of UnitedHealth Group (UNH)
Long-Term Dividend Yield History of UnitedHealth Group (UNH)

Zimmer Holdings (NYSE:ZMH) has a market capitalization of $12.92 billion. The company employs 9,300 people, generates revenue of $4.471 billion and has a net income of $752.90 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1.410 billion. The EBITDA margin is 31.54 percent (the operating margin is 23.42 percent and the net profit margin 16.84 percent).

Financial Analysis: The total debt represents 20.20 percent of the company’s assets and the total debt in relation to the equity amounts to 31.07 percent. Due to the financial situation, a return on equity of 13.28 percent was realized. Twelve trailing months earnings per share reached a value of $4.39. Last fiscal year, the company paid $0.54 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 17.17, the P/S ratio is 2.81 and the P/B ratio is finally 2.20. The dividend yield amounts to 1.06 percent and the beta ratio has a value of 1.14.


Long-Term Stock Price Chart Of Zimmer Holdings (ZMH)
Long-Term Dividend Payment History of Zimmer Holdings (ZMH)
Long-Term Dividend Yield History of Zimmer Holdings (ZMH)


Take a closer look at the full list of the cheapest healthcare dividend stocks. The average P/E ratio amounts to 13.12 and forward P/E ratio is 9.44. The dividend yield has a value of 2.66 percent. Price to book ratio is 3.03 and price to sales ratio 1.63. The operating margin amounts to 20.66 percent and the beta ratio is 0.85. Stocks from the list have an average debt to equity ratio of 0.51.

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

Cheap Healthcare Dividend Stocks (Click to enlarge)

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Related stock ticker symbols:
PDLI, WCRX, QCOR, TEVA, HLF, NATR, WLP, HUM, CI, AET, UNH, STJ, AZN, ENSG, DGX, IVC, MRK, ZMH, PFE, MDT

Selected Articles:

*I am long HLF, AZN, MDT. 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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