In this article, we will take a look at the 10 Healthcare Stocks with Highest Dividends.
In December, CNBC reported that health-care job growth is propping up the labor market at a time when many other industries are struggling. Labor economists see this as a worrying signal for job seekers and the broader US economy. Employers in the health care and social services sector added 695,000 jobs in 2025 through November, based on data from the US Bureau of Labor Statistics. At the same time, total job gains across the U.S. economy reached 610,000. That gap stands out, as without hiring in health care, the economy would have lost about 85,000 jobs.
The J.P. Morgan 44th Annual Healthcare Conference offered a clearer sense of what may lie ahead for the industry. Discussions at the conference showed that researchers are continuing to find benefits for GLP-1s beyond weight loss. Data points to their ability to help prevent diabetes and reduce cardiovascular risks.
Several industry and government leaders described GLP-1s as a “strategic investment” in addressing health risks linked to obesity. There is also a broader implication. Expanding access to these drugs could reduce chronic noncommunicable diseases in obese populations, which may lower overall healthcare utilization. At the same time, the Trump administration said it had brokered a deal to lower GLP-1 prices for Medicare and Medicaid recipients. This could support wider use, especially as a GLP-1 pill enters the market.
Taken together, these developments suggest that demand for GLP-1s will grow, and competition among manufacturers is likely to intensify.
Given this, we will take a look at some of the best healthcare stocks with the highest dividends.
Our Methodology:
For this list, we screened for dividend stocks within the healthcare sector and picked those with dividend yields above 2%, as of April 15. These stocks are also popular among hedge funds. We limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
10. Elevance Health, Inc. (NYSE:ELV)
Dividend Yield as of April 15: 2.2%
On April 13, Truist lowered its price recommendation on Elevance Health, Inc. (NYSE:ELV) to $375 from $390. It reiterated a Buy rating on the shares. The change came as part of a broader Q1 preview for Healthcare Services. The firm still takes a positive view on the sector. It points to steady demand, long-term structural tailwinds, and a reimbursement environment that looks more stable. The recent Final Medicare Advantage Rule was described as an “encouraging data point,” according to the analyst. Truist also noted that the group benefits from its scale and domestic focus. It sees the sector as defensive in nature. At the same time, companies are gaining from AI, automation, and better connectivity across systems. Strong free cash flow and financial flexibility are expected to support continued investment, M&A activity, and shareholder returns.
On April 8, Evercore ISI analyst Elizabeth Anderson initiated coverage of Elevance Health with an In Line rating and a $345 price target. The firm described Elevance as a diversified managed care company with “resilient” earnings in the current environment. It suggested the company could meet or exceed its 2026 guidance. Still, there are some concerns. Evercore sees downside risk to 2027 estimates. It also flagged a “meaningful likelihood” that the One Big Beautiful Bill work requirements could trigger “another wave of rate-acuity mismatch” in Medicaid.
Elevance Health, Inc. operates as a health insurer in the United States. The business is organized into four segments: Health Benefits, CarelonRx, Carelon Services, and Corporate & Other.
9. Johnson & Johnson (NYSE:JNJ)
Dividend Yield as of April 15: 2.25%
On April 15, Barclays analyst Matt Miksic raised the firm’s price recommendation on Johnson & Johnson to $255 from $234. It reiterated an Equal Weight rating on the shares. The analyst noted that the company’s pharma unit delivered its sixth consecutive quarter of double-digit organic growth. In a research note, Barclays said it expects J&J’s new products, along with “durable” core growth in medical technology and pharma, to support its goal of double-digit sales growth by the end of the decade.
During the Q1 2026 earnings call, CEO and Chairman Joaquin Duato said the company delivered operational sales growth of 6.4%. He explained that the company’s growth strategy remains focused on oncology, immunology, neuroscience, cardiovascular, surgery, and vision. He also said the company now has 28 platforms or products generating at least $1 billion in annual revenue and is on track to reach its 2026 target of $100 billion in annual revenue for the first time.
Speaking about oncology, Duato said DARZALEX continues to serve as the gold standard in multiple myeloma, with sales of $4 billion and operational sales growth of 18%. He also pointed to the FDA approval of TECVAYLI in combination with DARZALEX FASPRO, noting that the regimen could position itself as a potential new standard of care as early as the second-line setting.
Johnson & Johnson and its subsidiaries are engaged in the research and development, manufacture, and sale of a range of products in the healthcare field. The company operates through two segments: Innovative Medicine and MedTech.
8. Gilead Sciences, Inc. (NASDAQ:GILD)
Dividend Yield as of April 15: 2.35%
On April 13, Citi analyst Geoff Meacham lifted the firm’s price recommendation on Gilead Sciences, Inc. (NASDAQ:GILD) to $165 from $156. It reiterated a Buy rating on the shares. The update came as part of a broader Q1 preview in the biopharma space.
On April 7, Reuters reported that Gilead said it would acquire Germany-based Tubulis GmbH for up to $5 billion, as it looks to strengthen its cancer drugs pipeline. The move adds to Gilead’s recent deal activity. The company has been pushing beyond its core areas as it faces patent expiries and weaker sales from its COVID-19 treatment.
With this acquisition, Gilead gains access to Tubulis’ experimental drugs. These are part of a class known as antibody-drug conjugates, or ADCs, often described as “guided missiles” because they deliver chemotherapy directly to cancer cells while limiting damage to healthy tissue. Gilead will acquire all outstanding equity of Tubulis for $3.15 billion in upfront cash, payable at closing, along with up to $1.85 billion in milestone payments.
The two companies have worked together before through licensing agreements focused on ADC development. Tubulis also has a partnership with Bristol-Myers Squibb. Once the deal closes, which is expected in the second quarter, Tubulis will operate as an ADC research organization within Gilead.
Gilead Sciences, Inc. is a biopharmaceutical company focused on developing treatments for life-threatening diseases. Its work spans HIV, viral hepatitis, COVID-19, cancer, and inflammation.
7. Becton, Dickinson and Company (NYSE:BDX)
Dividend Yield as of April 15: 2.70%
On April 14, RBC Capital lowered its price recommendation on Becton, Dickinson and Company (NYSE:BDX) to $175 from $195. It maintained a Sector Perform rating on the shares. The update came as part of a broader Q1 preview for MedTech names. The firm said its intra-quarter due diligence points to strong fundamentals and stable end markets. It does not see any signs of demand disruption at this stage.RBC also said the recent sentiment-driven dislocation looks unwarranted. In its view, this is creating opportunities across the sector, both heading into Q1 earnings and over the longer term.
For Becton Dickinson, though, the firm expects the stock to remain range-bound. It pointed to the lack of a clear catalyst, while noting that Alaris is likely to remain a headwind in FY26 and FY27.
Becton, Dickinson and Company is a global medical technology company. It develops, manufactures, and sells a wide range of medical supplies, devices, laboratory equipment, and diagnostic products used by healthcare institutions, physicians, life science researchers, and clinical laboratories.
6. Merck & Co., Inc. (NYSE:MRK)
Dividend Yield as of April 15: 2.88%
On April 13, UBS analyst Michael Yee lifted the firm’s price recommendation on Merck & Co., Inc. to $145 from $130. It reiterated a Buy rating on the shares. The revision was part of a broader Q1 preview across the pharmaceuticals and biotechnology group.
A few days earlier, on April 7, the company said it would begin a cash tender offer, through a subsidiary, to acquire all outstanding shares of common stock of Terns Pharmaceuticals. This followed an earlier move on March 25, 2026, when Merck entered into a definitive agreement to acquire Terns.
If the offer closes as expected, Terns stockholders will receive $53.00 net in cash for each share that is validly tendered and not withdrawn. The payment will not include interest and will be subject to any applicable tax withholding. After the shares are purchased through the tender offer, Terns will become a wholly owned subsidiary of Merck.
Merck & Co., Inc. is a global healthcare company focused on delivering health solutions through its prescription medicines. Its portfolio includes biologic therapies, vaccines, and animal health products. The Pharmaceutical segment covers its human health pharmaceutical and vaccine business.
5. Amgen Inc. (NASDAQ:AMGN)
Dividend Yield as of April 15: 2.89%
On April 13, UBS lifted its price recommendation on Amgen Inc. (NASDAQ:AMGN) to $400 from $390. It reiterated a Buy rating on the shares. The revision came as part of a broader Q1 preview across the pharmaceuticals and biotechnology group.
On April 8, Truist also updated its view on the company. It boosted its price target to $325 from $319 and maintained a Hold rating, as part of a wider preview of Q1 earnings in biotech. The firm said that reactivity to regulatory and policy shifts across the sector has started to ease. It also pointed to a recent pickup in deal activity, which could build momentum through the rest of the year and into the mid-term period. For Amgen, Truist made a few specific adjustments. It increased its long-term penetration assumptions for Krystexxa, citing stronger patent protection that now extends into 2040. It also raised the probability of success for MariTide, reflecting greater confidence in its commercially viable profile in obesity.
Amgen Inc. is a biotechnology company focused on discovering, developing, manufacturing, and delivering medicines for serious diseases. The company targets areas with high unmet medical needs and uses its expertise to develop treatments aimed at improving patient outcomes. It operates within the human therapeutics segment.
4. Medtronic plc (NYSE:MDT)
Dividend Yield as of April 15: 3.26%
On April 15, Truist analyst Richard Newitter lowered the firm’s price target on Medtronic plc (NYSE:MDT) to $95 from $103 and kept a Hold rating on the shares. The update came as part of a broader Q1 preview for MedTech.The analyst said Q1 performance is expected to come in line with, or slightly better than, what current investor sentiment suggests around volumes. There is some caution in the market, but the underlying expectations appear more stable. Truist also noted that the stock’s discount could narrow. The reasoning is straightforward. The company is now one quarter closer to potential revenue accelerants. At the same time, it will need to show faster revenue and EPS growth to support higher valuation multiples over the long term.
On April 13, Mizuho also updated its view on the company. It lowered its price target on Medtronic to $120 from $125 and kept an Outperform rating on the shares. The firm adjusted estimates and targets across several names in medical devices and diagnostics ahead of Q1 earnings.
Medtronic plc (NYSE:MDT) is based in Ireland and provides healthcare technology solutions. Its business is organized across four main segments: Cardiovascular, Neuroscience, Medical Surgical, and Diabetes.
3. CVS Health Corporation (NYSE:CVS)
Dividend Yield as of April 15: 3.55%
On April 15, Baird raised its price recommendation on CVS Health Corporation (NYSE:CVS) to $94 from $92. It reiterated an Outperform rating on the shares. The firm updated its model as it became more constructive on the stock.
During the Q4 2025 earnings call, CEO David Joyner said 2025 had been a meaningful year of progress for CVS Health. He pointed to the company’s ongoing effort to simplify healthcare while improving affordability and access. He referred to fourth-quarter results, noting adjusted operating income of $2.6 billion and adjusted EPS of $1.09. He also reiterated the company’s full-year 2026 adjusted EPS guidance, which remains in the range of $7 to $7.20.For the full year, Joyner reported adjusted EPS of $6.75 and operating cash flow of $10.6B. Both came in ahead of the company’s initial expectations.
Within the Aetna segment, he said adjusted operating income improved by more than $2.6 billion year over year. He added that the company refreshed its leadership team, worked on improving its culture, and strengthened key differentiators, including capabilities supporting its leading Stars position among national payers.
CVS Health Corporation operates as a health solutions company. Its segments include Health Care Benefits, Health Services, Pharmacy & Consumer Wellness, and Corporate/Other. The Health Care Benefits segment provides a range of traditional, voluntary, and consumer-directed health insurance products and related services, including medical, pharmacy, dental, and behavioral health plans, PDPs, and Medicaid health care management services.
2. Embecta Corp. (NASDAQ:EMBC)
Dividend Yield as of April 15: 6.24%
On April 13, Mizuho lowered its price recommendation on Embecta Corp. (NASDAQ:EMBC) to $12 from $14. It reiterated a Neutral rating on the shares. The change came as the firm adjusted estimates and targets across several medical devices and diagnostics names ahead of Q1 earnings.
The same day, BTIG also updated its view. It lowered its price target on Embecta to $22 from $25 while maintaining a Buy rating, as part of a broader research note on medical technology. BTIG said it is revising its models following the CMS proposed rule for the FY27 inpatient prospective payment system. The update includes early commentary and decisions tied to new technology add-on payments, according to the analyst.
Earlier in March, Embecta said it had reached a definitive agreement to acquire Owen Mumford Holdings Limited, a UK-based company known for its work in medical devices and drug-delivery technologies. Under the deal, Embecta will pay £100 million in cash at closing, with the final amount subject to customary adjustments. The agreement also includes up to £50 million in additional payments, tied to how the Aidaptus next-generation auto-injector platform performs over the three years after closing.
The company’s Board of Directors approved the transaction unanimously. It is expected to close in Embecta’s fiscal third quarter of 2026, pending regulatory approvals and other standard conditions.
Embecta Corp. operates as a global diabetes care company, focused on supporting people living with diabetes. Its portfolio includes pen needles, syringes, and safety injection devices, along with a digital application designed to help patients manage their condition.
1. Spok Holdings, Inc. (NASDAQ:SPOK)
Dividend Yield as of April 15: 11.29%
On April 14, Spok Holdings, Inc. (NASDAQ:SPOK) announced it is reshaping parts of the business to cut costs and tighten its focus, particularly across its go-to-market teams. The idea is straightforward. Free up resources now so the company can keep investing in its Care Connect Suite and push further into artificial intelligence, while still returning cash to shareholders.
As part of that effort, management plans to simplify the leadership structure and reduce the workforce by about 10%. The company expects this move to lower headcount-related costs, excluding stock-based compensation, along with other operating expenses by more than $6.0 million a year. There is a near-term cost to get there. Spok estimates restructuring charges of roughly $1.6 million to $2.0 million, mostly hitting in the second and third quarters of 2026. These costs are largely tied to one-time items like employee benefits and severance. The company expects most of this process to wrap up by the third quarter.
That said, these figures rely on internal assumptions, and actual results could end up looking different. Management also noted that unexpected developments during execution could lead to additional charges or cash outflows that are not part of the current estimate. For reporting purposes, the company plans to exclude these restructuring costs from its non-GAAP metrics, including Adjusted EBITDA and adjusted operating expenses.
Spok Holdings, Inc. operates through its wholly owned subsidiary, Spok, Inc., focusing on healthcare communications. Its offerings center on clinical communication and collaboration tools, including call center solutions, alerting and notification systems, wireless messaging, mobile communication platforms, and public safety solutions.
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