Pfizer Inc. (PFE), Baxter International (BAX), Quest Diagnostics (DGX) & Collecting Dividends From the Healthcare Sector

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Revenue has been on the decline, but only slightly, over the last three years at Quest. Taking the last five years into account, they are actually positive. Looking at analysts estimates over the next couple of years, we can see that they’re expected to grow earnings by a rate of about 5% per year.

The dividend from Quest is the lowest of the bunch at 2.1%. This dividend has been growing at a rate of around 8% per year over the last five years. It also shows no sign of disappearing as the company’s payout ratio is only 28%.

Investor takeaway

I like Pfizer and Baxter, and Quest Diagnostics.

Pfizer is one of the largest pharmaceutical companies in the world and their huge earnings allow them to continue their research into new drugs. Obviously not every single drug in the pipeline now will make it to the market, but the few that will are enough to justify a buy on Pfizer Inc. (NYSE:PFE) for the long-term.

Baxter International is showing nice growth with a nice little yield tacked on the end. Analysts seem to love the company as they’ve given it an average rating of 1.86, a ‘moderate buy’.

Quest has carved out its own little niche market, and they’re one of the largest providers of diagnostic services. With the aging population likely on their way to more and more tests, I definitely feel that Quest is a good place to park the cash over the long haul.

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