5 Best Healthcare Dividend Stocks to Buy

In this article, we will take a look at 5 best healthcare dividend stocks to buy. If you want to read our detailed analysis of the healthcare sector and dividend stocks, go directly to read 14 Best Healthcare Dividend Stocks to Buy.

5. Merck & Co., Inc. (NYSE:MRK)

Number of Hedge Fund Holders: 75

Merck & Co., Inc. (NYSE:MRK) specializes in a wide range of biological therapies, medicines, and vaccines. In May, Barclays lifted its price target on the stock to $130 with an Overweight rating on the shares. The firm appreciated the company’s performance in its recent quarter.

On May 23, Merck & Co., Inc. (NYSE:MRK) declared a quarterly dividend of $0.73 per share, which fell in line with its previous dividend. It is one of the best dividend stocks on our list as it has raised its payouts for 12 years in a row. The stock’s dividend yield on May 23 came in at 2.58%.

As of the close of Q1 2023, 75 hedge funds in Insider Monkey’s database held stakes in Merck & Co., Inc. (NYSE:MRK), with a total value of over $3.7 billion.

Artisan Partners mentioned Merck & Co., Inc. (NYSE:MRK) in its Q4 2022 investor letter. Here is what the firm has to say:

“Merck & Co., Inc. (NYSE:MRK) is a provider of health care solutions including prescription medicines, vaccines, biologic therapies, animal health and consumer care products. Shares have benefited from investors seeking safety in areas with less economic and interest rate sensitivity. With about one third of its sales generated by blockbuster oncology drug Keytruda, the key issue for investors is the success of its large R&D pipeline to replace those sales when Keytruda comes off patent in 2028. However, Merck seems to be getting little credit from investors for the 60+ programs it has in clinical development, despite having several solid and large new product opportunities. Additionally, the company’s strong balance sheet and robust free cash flow provide it multiple options for future partnerships and acquisitions, besides return of capital to shareholders via dividends and share repurchases.”