7 Highly Profitable Healthcare Dividend Stocks with Great Yields

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Mar 02, 2012
Healthcare Dividend Stocks With High Return On Investments And Big Operating Margins Researched By Dividend Yield - Stock, Capital, Investment. Healthcare dividend stocks delivered a fantastic return over the recent 20 years. Now, they are struggling due to the fact that most of their patents are draining off within the upcoming years. They have no serious alternative to compensate the expected revenue losses and to drive growth. Companies with high margins will survive the consolidation best.


Here is a little screen of dividend stocks from the healthcare sector that have the best margins and returns. Both measured by a return on investment and an operating margin of more than 20 percent. Seven stocks fulfilled these criteria of which five come from the drug manufacturing industry. Also five have a current buy or better recommendation.


Here are my favorite stocks:


1. AstraZeneca (AZN, Financial) has a market capitalization of $58.03 billion. The company employs 61,100 people, generates revenues of $33,591.00 million and has a net income of $10,016.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $15,345.00 million. Because of these figures, the EBITDA margin is 45.68 percent (operating margin 38.09 percent and the net profit margin finally 29.82 percent).


The total debt representing 17.66 percent of the company’s assets and the total debt in relation to the equity amounts to 40.13 percent. Due to the financial situation, a return on equity of 42.98 percent was realized. Twelve trailing months earnings per share reached a value of $7.29. Last fiscal year, the company paid $2.80 in form of dividends to shareholders.


Here are the price ratios of the company: The P/E ratio is 6.21, P/S ratio 1.70 and P/B ratio 2.50. Dividend Yield: 6.24 percent. The beta ratio is 0.60.


2. GlaxoSmithKline (GSK, Financial) has a market capitalization of $113.86 billion. The company employs 96,461 people, generates revenues of $43,589.05 million and has a net income of $8,686.93 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $15,091.52 million. Because of these figures, the EBITDA margin is 34.62 percent (operating margin 28.50 percent and the net profit margin finally 19.93 percent).


The total debt representing 36.27 percent of the company’s assets and the total debt in relation to the equity amounts to 185.52 percent. Due to the financial situation, a return on equity of 62.19 percent was realized. Twelve trailing months earnings per share reached a value of $3.29. Last fiscal year, the company paid $2.39 in form of dividends to shareholders.


Here are the price ratios of the company: The P/E ratio is 13.71, P/S ratio 2.55 and P/B ratio 8.75. Dividend Yield: 5.09 percent. The beta ratio is 0.61.


3. Novo Nordisk (NVO, Financial) has a market capitalization of $79.06 billion. The company employs 32,136 people, generates revenues of $11,895.29 million and has a net income of $3,065.35 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4,457.91 million. Because of these figures, the EBITDA margin is 37.48 percent (operating margin 33.72 percent and the net profit margin finally 25.77 percent).


The total debt representing 1.32 percent of the company’s assets and the total debt in relation to the equity amounts to 2.28 percent. Due to the financial situation, a return on equity of 45.95 percent was realized. Twelve trailing months earnings per share reached a value of $5.44. Last fiscal year, the company paid $2.51 in form of dividends to shareholders.


Here are the price ratios of the company: The P/E ratio is 26.25, P/S ratio 5.63 and P/B ratio 11.61. Dividend Yield: 1.78 percent. The beta ratio is 0.56.


Take a closer look at the full table of highly profitable healthcare dividend stocks with best yields. The average price to earnings ratio (P/E ratio) amounts to 15.08 and forward P/E ratio is 13.12. The dividend yield has a value of 4.62 percent. Price to book ratio is 6.29 and price to sales ratio 3.49. The operating margin amounts to 39.73 percent. Finally, the return on equity has a fantastic margin of 39.70 percent and the return on investment follows with a value of 45.12 percent.


Related stock ticker symbols:

PDLI, AZN, PMD, GSK, BMY, NVO, SHPGY


Selected Articles:

· The Best Yielding Healthcare Dividend Stocks With Fastest Earnings Growth

· 15 Healthcare Dividend Stocks With Buy Or Better Recommendation

· Best Healthcare Stock Picks For 2012

· 12 Healthcare Dividend Stocks With Best Future EPS Growth