In this article, we discuss 5 healthcare stocks for an income portfolio. If you want to see more healthcare dividend stocks, click 10 Healthcare Stocks for an Income Portfolio.
5. AstraZeneca PLC (NASDAQ:AZN)
Number of Hedge Fund Holders: 42
Dividend Yield as of April 22: 2.18%
Based in Cambridge, United Kingdom, AstraZeneca PLC (NASDAQ:AZN) is a healthcare and pharmaceutical company that focuses on the commercialization of prescription medicines. AstraZeneca PLC (NASDAQ:AZN)’s dividend yield on April 22 came in at 2.18%.
On February 10, AstraZeneca PLC (NASDAQ:AZN) declared a second interim dividend of $1.97 per share, resulting in a full-year dividend per share of $2.87. The dividend was paid to shareholders on March 28.
Morgan Stanley analyst Mark Purcell on April 21 raised the firm’s price target on AstraZeneca PLC (NASDAQ:AZN) to 11,100 GBp from 10,200 GBp and maintained an Overweight rating on the shares.
According to Insider Monkey’s fourth quarter database, AstraZeneca PLC (NASDAQ:AZN) was found in the public stock portfolios of 42 hedge funds, compared to 41 funds in the earlier quarter. Ken Fisher’s Fisher Asset Management is the biggest shareholder of the company, with more than 20 million shares worth $1.17 billion.
4. Eli Lilly and Company (NYSE:LLY)
Number of Hedge Fund Holders: 61
Dividend Yield as of April 22: 1.41%
Eli Lilly and Company (NYSE:LLY) was founded in 1876 and is headquartered in Indianapolis, marketing human pharmaceuticals worldwide. The company’s fourth quarter revenue of $8 billion outperformed Wall Street estimates by $113.13 million. Eli Lilly and Company (NYSE:LLY) stated that it expects to spend approximately $165 million for research and development milestones in the first quarter of 2022.
On December 13, Eli Lilly and Company (NYSE:LLY) declared a $0.98 per share quarterly dividend, a 15.3% increase from its prior dividend of $0.85. The dividend was paid on March 10, for shareholders of the company on February 15. Eli Lilly and Company (NYSE:LLY)’s dividend yield on April 22 came in at 1.41%.
Morgan Stanley analyst Terence Flynn assumed coverage of Eli Lilly and Company (NYSE:LLY) on April 6 with an Overweight rating and a $364 price target, naming it his Top Pick among U.S. Pharmaceuticals. Despite the generally constructive backdrop, the analyst believes that Eli Lilly and Company (NYSE:LLY) has “the most robust new product cycle” outlook in pharma. In the next two years, the company could launch five new drugs, the analyst added.
Among the hedge funds tracked by Insider Monkey, 61 funds were bullish on Eli Lilly and Company (NYSE:LLY) at the end of December 2021, with collective stakes worth $5.30 billion. Peter Rathjens, Bruce Clarke, and John Campbell’s Arrowstreet Capital is the biggest position holder in the company, with more than 2 million shares valued at approximately $591 million.
Here is what Saturna Capital Amana Funds has to say about Eli Lilly and Company (NYSE:LLY) in its Q4 2021 investor letter:
“Industrials and pharmaceutical companies were among the Amana Income Fund’s strongest performers in the fourth quarter. Industrials and pharmaceutical companies were among the Amana Income Fund’s strongest performers in the fourth quarter. Drug maker Eli Lilly is represented in the 10 Largest Contributors.”
3. Cigna Corporation (NYSE:CI)
Number of Hedge Fund Holders: 53
Dividend Yield as of April 22: 1.76%
Cigna Corporation (NYSE:CI) was founded in 1982 and is headquartered in Bloomfield, Connecticut. It specializes in managed healthcare services, health insurance, life insurance, and pharmacy benefits. Cigna Corporation (NYSE:CI) offers a dividend yield of 1.76% as of April 22.
On February 28, Cigna Corporation (NYSE:CI) announced a number of capital deployment priorities for boosting shareholder value and delivering long-term growth. It expects to amass deployable capital worth more than $12 billion in 2022, including $5.4 billion in after-tax proceeds from the previously announced disposal of its international life, accident, and supplemental benefits operations in seven countries. The company returned $1.3 billion in dividends to shareholders in 2021, including share repurchase authorization of $7.7 billion.
Cigna Corporation (NYSE:CI) reported its Q4 financial results on February 3, posting earnings per share of $4.77, topping analysts’ consensus estimates by $0.06. Revenue for the period climbed 9.62% year-over-year to $45.68 billion, surpassing market predictions by $1.69 billion.
Truist analyst David MacDonald on April 7 raised the price target on Cigna Corporation (NYSE:CI) to $290 from $275 and kept a Buy rating on the shares after previewing the group’s Q1 results. He remains positive on the underlying demand drivers and attractive tailwinds for the Healthcare Services industry, adding that cash flows remain robust and he sees accelerating M&A activity in the space.
According to Insider Monkey’s Q4 data, 53 hedge funds were long Cigna Corporation (NYSE:CI), with collective stakes amounting to $1.92 billion. Andrew Wellington and Jeff Keswin’s Lyrical Asset Management is one of the leading shareholders of the company, with 1.16 million shares worth $267.3 million.
Here is what Davis Opportunity Fund has to say about Cigna Corporation (NYSE:CI) in its Q4 2021 investor letter:
“Healthcare is included in the portfolio both for company-specific reasons, as well as big picture trends. At the company level, we hold select companies in pharmaceuticals, healthcare services and health insurance at attractive valuations. This is at a time when the average age of the U.S. population is fast approaching 40, older than Asia-Pacific and a little younger than the aged populations of Europe and Japan. The number of seniors in the U.S.—i.e., 65 years or older— now surpasses 54 million, or about 15% of the population. Seniors, on average, take a much greater number of medications and account for a large and disproportionate share of healthcare spending, and we expect that trend to continue due to both raw demographics and a proliferation in the number of available treatments and services available now, the latter being driven by innovation and investment in the healthcare industry. Representative holdings in the Fund include Cigna, United Health Group, Viatris and Quest Diagnostics.”
2. Abbott Laboratories (NYSE:ABT)
Number of Hedge Fund Holders: 64
Dividend Yield as of April 22: 1.57%
Abbott Laboratories (NYSE:ABT) is an American multinational company that specializes in branded generic medicines, medical devices, diagnostic assays, and nutritionals. Abbott Laboratories (NYSE:ABT)’s dividend yield on April 22 stood at 1.57%, and the company’s dividend payments have consistently increased for 50 years.
Abbott Laboratories (NYSE:ABT) reported its financial results for the first quarter of 2022 on April 20, announcing earnings per share of $1.73, beating market consensus by $0.27. The $11.90 billion revenue jumped 13.76% year-over-year, outperforming analysts’ predictions by roughly $899 million.
Abbott Laboratories (NYSE:ABT) declared on April 20 a $0.47 per share quarterly dividend, in line with previous. The dividend is payable on May 16, to shareholders of the company as of April 15.
On April 21, Raymond James analyst Jayson Bedford maintained an Outperform rating on Abbott Laboratories (NYSE:ABT) but lowered the firm’s price target on the stock to $135 from $143. The analyst stated that Abbott Laboratories (NYSE:ABT)’s Q1 results were “solid” and demonstrate the robust nature of its portfolio. Three out of four business divisions grew by more than 10% organically, but the analyst reduced his FY23 estimates to account for the lingering Nutrition recall.
According to the Q4 database of Insider Monkey, 64 hedge funds were long Abbott Laboratories (NYSE:ABT), with combined stakes of $4.25 billion. Ric Dillon’s Diamond Hill Capital is a prominent stakeholder of the company, with more than 6 million shares worth $851.45 million.
Here is what Richie Capital Group has to say about Abbott Laboratories (NYSE:ABT) in its Q4 2021 investor letter:
“Abbott Labs (ABT – up 20.08%) – Abbott Labs continues to benefit from resurging demand for Covid testing kits. The company is planning to increase their monthly production of BinaxNOW athome rapid tests to 100M a month, a 43% increase from current levels.”
1. Anthem, Inc. (NYSE:ANTM)
Number of Hedge Fund Holders: 63
Dividend Yield as of April 22: 1.02%
Anthem, Inc. (NYSE:ANTM) operates as a health benefits company in the United States, offering managed healthcare and insurance services to individuals, Medicaid, and Medicare markets. Anthem, Inc. (NYSE:ANTM) has an 11-year history of consistently raising its dividends.
Anthem, Inc. (NYSE:ANTM) declared on April 20 a $1.28 per share quarterly dividend, in line with previous. The dividend is payable on June 24, to shareholders of the company as of June 10. On April 22, Anthem, Inc. (NYSE:ANTM)’s dividend yield came in at 1.02%.
Anthem, Inc. (NYSE:ANTM) reported its Q1 2022 financial results on April 20, announcing an EPS of $8.25, exceeding market consensus estimates by $0.42. Revenue over the period jumped 18.03% year-over-year to $37.90 billion, outperforming analysts’ forecasts by $582.73 million.
On April 22, Wells Fargo analyst Stephen Baxter reiterated an Overweight rating on Anthem, Inc. (NYSE:ANTM) and raised the firm’s price target on the stock to $586 following the Q1 results. The analyst observed that the “underlying earnings quality was high” and Anthem, Inc. (NYSE:ANTM) also raised its FY22 adjusted EPS guidance. He continues to see business momentum for Anthem, Inc. (NYSE:ANTM) as “strong across both its health plan and services businesses”.
Among the hedge funds tracked by Insider Monkey, 63 funds held stakes worth $5.6 billion in Anthem, Inc. (NYSE:ANTM) at the end of December 2021, up from 59 the previous quarter worth $4.5 billion. Boykin Curry’s Eagle Capital Management is the leading position holder in the company, with 2.45 million shares valued at $1.13 billion.
Here is what ClearBridge Investments Large Cap Value Strategy has to say about Anthem, Inc. (NYSE:ANTM) in its Q4 2021 investor letter:
“The quarter also saw strong showings from Anthem; has been operating well and is a key player in the evolution of health care insurance and delivery, providing more integrated and cost-effective solutions and receiving a tailwind from an aging population. The company tends to be volatile based on changes in medical loss ratios (MLR), though we view this volatility as a short term for business models that are able to reprice policies relatively quickly. We added significantly to the position during the year.”
You can also take a look at 10 Monthly Dividend Stocks to Buy in April and 10 Oil Tanker Stocks That Pay Dividends.
