11 Cheapest Healthcare Dividend Stocks to Consider

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Aug 02, 2011
I screened the healthcare sector by stocks with three pricing ratios. At first, I selected the forward P/E ratio and chose a value of less than 15. This ratio considers the future growth and is in my view a better indicator than the current P/E ratio. Second, I used the P/S ratio with a value of under one. This ratio shows me how many stocks are cheaper than the actual market capitalization. It also delivers me many low margin stocks. Such stocks have in my view margin upside potential. Finally, I sorted my results by highest dividend yield.


As result, I had 59 interesting stocks of which 11 pay dividends. Nearly half of myresults came from the healthcare plans industry.


Here are my three most promising stocks from the screening results:


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1. WellPoint (WLP, Financial) is acting within the healthcare plans industry. The company has a market capitalization of USD $$23.6 billion, generates revenues in an amount of USD $$59.2 billion and a net income of USD $$2.9 billion. Its P/E ratio is 8.7 and forward P/E ratio is 8.5. Its P/S ratio is 0.4 and P/B ratio is 0.9. Here is additional dividend information: Dividend Yield: 1.53 percent | Years of Consecutive Dividend Increasing: 0 Years | 5-Year Dividend Growth: 0 percent | Dividends Since 2011.


2. Universal Health Services (UHS, Financial) is acting within the hospitals industry. The company has a market capitalization of USD $4.5 billion, generates revenues of USD $6.1 billion and a net income of USD $271.8 million. Its P/E ratio is 16.7 and forward P/E ratio 10.2. Its P/S is 0.7 and P/B is 2.2. Here is additional dividend information: Dividend Yield: 0.4 percent | Years of Consecutive Dividend Increasing: 2 Years | 5-Year Dividend Growth: 4.8 percent | Dividends Since 2003.


3. Unitedhealth Group (UNH, Financial) is acting within the healthcare plans industry. The company has a market capitalization of USD $52.0 billion, generates revenues of USD $98.4 billion and a net income of USD $4.9 Billion. Its P/E ratio is 10.8 and forward P/E ratio 10.1. Its P/S ratio is 0.5 and P/B ratio is 1.9. Here is additional dividend information: Dividend Yield: 1.4 percent | Years of Consecutive Dividend Increasing: 1 Year | 5-Year Dividend Growth: 132.69 percent | Dividends Since 1990.


Take a closer look at the full table. The average P/E ratio of the list is 12.35 while the average forward P/E ratio is 10.15. The dividend yield has an average value of 1.29 percent.The P/B ratio is 1.69 and P/S ratio is 0.62. The average operating margin is 8.78 percent.[b]