Best dividend healthcare stocks to invest in 2025

Healthcare stocks with reliable dividend payouts are attractive for investors seeking both income and long-term growth. These companies operate in essential sectors of global health and maintain strong financial performance, even during economic downturns. Their ability to return capital to shareholders while expanding their product pipelines makes them particularly appealing in today's market.

Cardinal Health plays a critical role in the healthcare supply chain, distributing pharmaceuticals and medical products across vast networks with operational efficiency. AbbVie, known for its blockbuster drugs like Humira and Skyrizi, offers high yields and a strong commitment to research and development. Novo Nordisk continues to lead the global diabetes and obesity treatment markets, delivering consistent dividend growth alongside rising revenues.

Together with companies like Cigna, Abbott Laboratories, and AstraZeneca, these healthcare dividend payers offer a mix of stability, innovation, and shareholder returns. For 2025, they remain among the most compelling options for income-focused investors in the sector.

Roboforex R-Trader gives you access to over 10,000 stocks, ETFs, commodities, and crypto. All of the stocks mentioned in this article are available for purchase there.

Before we dive into each company, let`s take a look at how your investment would have performed if you had invested in top 10 stocks mentioned in this article 5 years ago.

Now, let`s take a closer look at each of the companies:

  • Cardinal Health (CAH)

    Cardinal Health is a multinational healthcare services and products company that provides pharmaceuticals, medical supplies, and solutions to healthcare providers worldwide. The company was founded in 1971 in Dublin, Ohio, originally as Cardinal Foods before shifting its focus to pharmaceutical distribution. Over the years, it has grown into a critical player in the healthcare supply chain, ensuring the efficient delivery of essential medical products.

    Cardinal Health operates through two main segments: pharmaceutical distribution and medical products. Its pharmaceutical division supplies medications to hospitals, pharmacies, and healthcare facilities, while its medical segment provides surgical supplies, laboratory products, and patient care solutions. With a strong focus on logistics, Cardinal Health helps healthcare providers optimize supply chain efficiency, reduce costs, and improve patient care outcomes.

    Cardinal Health financial statements

    Analysts recommendation: 1.84

    Financial Health

    • Return on assets (ROA): 3.25%
    • Return on equity (ROE): N/A
    • Return on investment (ROI): 37.18%

    Profitability

    • Gross margin: 3.4%
    • Operating margin: 1.07%
    • Net profit margin: 0.7%

    Growth

    • EPS (past 5 years): -5.3%
    • EPS (current): 6.4
    • EPS estimate (next quarter): 1.97
    • EPS growth (this year): 7.82%
    • EPS growth (next year): 11.96%
    • EPS growth (next 5 years): 10.45%
    • EPS growth (quarter-over-quarter): 99.37%
    • Sales growth (past 5 years): 9.33%
    • Sales growth (quarter-over-quarter): -0.06%

    💡 Why invest in Cardinal Health?

    Cardinal Health offers several potential advantages for investors seeking exposure to the healthcare industry:

    • Essential Role: As a distributor of pharmaceuticals and medical products, Cardinal Health plays a critical role in the healthcare supply chain.
    • Diversified Revenue Streams: The company's three segments provide a diversified revenue base, reducing reliance on any single market.
    • Scale and Efficiency: Cardinal Health's size and scale enable it to leverage its distribution network and negotiate favorable terms with suppliers.
    • Growth Potential: The healthcare industry continues to grow, driven by factors such as an aging population and increasing demand for medical services.

    🐌 Key considerations before investing in Cardinal Health

    However, before investing in Cardinal Health, it's crucial to consider these potential challenges:

    • Regulatory Environment: The healthcare industry is heavily regulated, with changes in government policies impacting reimbursement rates and market dynamics.
    • Competition: The pharmaceutical distribution and medical products markets are competitive, with both established players and new entrants vying for market share.
    • Supply Chain Disruptions: Issues with product availability, transportation, or manufacturing can impact operations and profitability.
    • Economic Conditions: Economic downturns can affect healthcare spending and demand for medical products.

    Final thoughts on Cardinal Health

    Cardinal Health's role as a healthcare distribution leader, diversified revenue streams, and scale offer potential advantages for investors. However, the regulatory environment, competition, supply chain risks, and economic factors necessitate careful consideration. Thorough research on Cardinal Health's market share, financial performance, and the overall healthcare industry trends is crucial before investing.

  • AbbVie (ABBV)

    AbbVie is a global biopharmaceutical company focused on discovering and delivering innovative medicines for some of the world's most complex diseases. Founded in 2013 as a spin-off from Abbott Laboratories, the company is headquartered in North Chicago, Illinois. Since its inception, AbbVie has grown into a major player in the pharmaceutical industry, with a strong presence in immunology, oncology, neuroscience, and virology.

    The company's portfolio includes blockbuster drugs such as Humira, Skyrizi, and Rinvoq, which have been instrumental in treating autoimmune diseases. AbbVie is also a leader in hematologic oncology and neuroscience, with treatments for conditions like leukemia and Parkinson's disease. By investing heavily in research and development, as well as strategic acquisitions like Allergan in 2020, AbbVie continues to expand its global reach and impact in the healthcare sector.

    AbbVie financial statements

    Analysts recommendation: 1.9

    Financial Health

    • Return on assets (ROA): 2.92%
    • Return on equity (ROE): 88.15%
    • Return on investment (ROI): 6.3%

    Profitability

    • Gross margin: 70.8%
    • Operating margin: 30.74%
    • Net profit margin: 7.24%

    Growth

    • EPS (past 5 years): -14.67%
    • EPS (current): 2.35
    • EPS estimate (next quarter): 3.22
    • EPS growth (this year): 20.82%
    • EPS growth (next year): 14.45%
    • EPS growth (next 5 years): 15.22%
    • EPS growth (quarter-over-quarter): -6.05%
    • Sales growth (past 5 years): 12.19%
    • Sales growth (quarter-over-quarter): 8.39%

    💡 Why invest in AbbVie?

    Several key factors make AbbVie an attractive prospect for investors seeking exposure to the healthcare sector:

    • Leader in Advanced Therapies: AbbVie holds a prominent position in developing and commercializing innovative treatments for various conditions, improving patients' lives.
    • Established Products: Blockbuster drugs like Humira generate significant revenue streams for AbbVie, fostering stability and funding for future endeavors.
    • Focus on R&D: AbbVie prioritizes research and development, constantly innovating and building a pipeline of promising new treatments for diverse therapeutic areas.
    • Strong Commercial Capabilities: AbbVie leverages its expertise to effectively market and distribute its medications, ensuring patients have access to their treatments.

    🐌 Key considerations before investing in AbbVie

    While AbbVie boasts established products and a robust pipeline, investors should consider the challenges in this sector, such as patent expirations and the ever-present focus on drug pricing:

    • Patent Expirations: The expiration of patents on established drugs like Humira can lead to a decline in revenue if AbbVie fails to successfully replace them with new therapies.
    • Drug Pricing Scrutiny: The rising cost of medications is a major concern, and AbbVie faces ongoing pressure to justify the pricing of its drugs.
    • Regulatory Environment: The pharmaceutical industry is heavily regulated, and AbbVie must comply with a complex set of rules governing clinical trials, drug approvals, and marketing practices.

    Final thoughts on AbbVie

    AbbVie's established product portfolio, focus on R&D, and strong commercial capabilities paint a potentially promising picture for long-term investors seeking exposure to the healthcare sector. However, patent expirations, drug pricing scrutiny, and the complex regulatory environment necessitate a cautious approach. Thorough research, analysis of AbbVie's plans to address these challenges, and a clear understanding of your risk tolerance are crucial before joining this healthcare investment expedition. Remember, navigating the intricate terrain of pharmaceutical stocks requires both an awareness of scientific advancements and a discerning eye for AbbVie's ability to navigate the ever-changing healthcare landscape. Choose wisely, and your portfolio might find itself well-positioned alongside the success story of AbbVie.

  • Novo Nordisk (NVO)

    Novo Nordisk A/S is a global healthcare leader specializing in diabetes care, headquartered in Bagsværd, Denmark. Founded in 1923, the company has a century-long history of innovation in the treatment and management of chronic diseases. With operations in over 80 countries and products marketed in more than 170 countries, Novo Nordisk is at the forefront of addressing global health challenges.

    The company focuses on developing pharmaceutical solutions for diabetes, obesity, hemophilia, and other serious chronic conditions. Its product portfolio includes world-renowned medications such as Ozempic, Wegovy, and NovoRapid, which are pivotal in managing diabetes and weight-related health issues. Committed to research and sustainability, Novo Nordisk continues to pioneer advancements that improve patient outcomes and support global health initiatives.

    Novo Nordisk financial statements

    Analysts recommendation: 2.06

    Financial Health

    • Return on assets (ROA): 26.37%
    • Return on equity (ROE): 87.53%
    • Return on investment (ROI): 44.25%

    Profitability

    • Gross margin: 84.33%
    • Operating margin: 45.11%
    • Net profit margin: 34.52%

    Growth

    • EPS (past 5 years): 21.74%
    • EPS (current): 3.37
    • EPS estimate (next quarter): 0.9
    • EPS growth (this year): 25.88%
    • EPS growth (next year): 18.37%
    • EPS growth (next 5 years): 18.92%
    • EPS growth (quarter-over-quarter): 10.76%
    • Sales growth (past 5 years): 18.58%
    • Sales growth (quarter-over-quarter): 15.81%

    💡 Why invest in Novo Nordisk?

    Diabetes dominance, innovation pipeline, global expansion powerhouse, and sustainability crusader make Novo Nordisk a potentially sweet portfolio addition.

    • Diabetes Dominance: Novo Nordisk reigns supreme in the global insulin market, boasting unrivaled expertise and brand loyalty, ensuring a robust foundation for consistent revenue streams.
    • Innovation Pipeline: Beyond traditional insulin, Novo Nordisk pumps resources into next-generation drugs and technologies, targeting diverse aspects of diabetes and expanding its reach into other chronic diseases.
    • Global Expansion Powerhouse: With operations spanning continents, Novo Nordisk taps into diverse healthcare needs and unlocks international growth potential, particularly in emerging markets.
    • Sustainability Crusader: Embracing environmental and social responsibility initiatives, Novo Nordisk aligns with investors seeking socially conscious investments and attracts talent in a competitive market.

    🐌 Key considerations before investing in Novo Nordisk

    Valuation concerns, patent cliff hangs, healthcare policy shifts, and competition intensifies cast a shadow of potential side effects for Novo Nordisk investors.

    • Valuation Concerns: Like many established healthcare players, Novo Nordisk's stock currently sits near all-time highs, demanding a cautious approach due to potentially limited immediate gains.
    • Patent Cliff Hangs: Expiring patents on key drugs could impact future revenue streams, making careful analysis of Novo Nordisk's pipeline crucial for long-term investors.
    • Healthcare Policy Shifts: Evolving healthcare policies and pricing pressures can affect Novo Nordisk's profitability and demand agility in navigating regulatory landscapes.
    • Competition Intensifies: Smaller biotech firms and nimble rivals are challenging Novo Nordisk's dominance, requiring constant innovation and strategic adaptability to maintain market share.

    Final thoughts on Novo Nordisk

    Novo Nordisk's diabetes leadership, robust innovation pipeline, global reach, and commitment to sustainability offer a potentially rewarding picture for long-term investors seeking healthcare exposure. However, near-peak valuation, patent cliff uncertainties, policy shifts, and rising competition warrant a measured approach. Thorough research, analysis of Novo Nordisk's future plans and market dynamics, and a clear understanding of your risk tolerance are crucial before joining this medical titan's battle against disease. Remember, navigating the complexities of healthcare stocks requires both a discerning eye for medical breakthroughs and a balanced perspective on market risks. Choose wisely, and your portfolio might just contribute to a healthier future for both your wealth and well-being.

  • Cigna (CI)

    The Cigna Group is a global health services company providing insurance, pharmacy benefits, and healthcare solutions to individuals and businesses. Founded in 1982 and headquartered in Bloomfield, Connecticut, the company has grown into one of the largest health insurers in the world, serving millions of customers across more than 30 countries. With a focus on improving health outcomes and affordability, Cigna offers a wide range of services, including medical, dental, disability, and life insurance products.

    The company operates through its core segments, including Cigna Healthcare and Evernorth, its health services division, which provides pharmacy benefit management, behavioral health, and care delivery solutions. Cigna is known for its emphasis on preventive care, value-based contracting, and digital health innovation to enhance patient experiences and reduce overall healthcare costs. By leveraging data-driven insights and a customer-first approach, The Cigna Group continues to play a vital role in shaping the future of healthcare, making high-quality care more accessible and efficient.

    Cigna financial statements

    Analysts recommendation: 1.58

    Financial Health

    • Return on assets (ROA): 3.42%
    • Return on equity (ROE): 12.37%
    • Return on investment (ROI): 7.55%

    Profitability

    • Gross margin: N/A
    • Operating margin: 3.41%
    • Net profit margin: 1.98%

    Growth

    • EPS (past 5 years): -2.04%
    • EPS (current): 18.05
    • EPS estimate (next quarter): 7.14
    • EPS growth (this year): 8.57%
    • EPS growth (next year): 11.54%
    • EPS growth (next 5 years): 10.69%
    • EPS growth (quarter-over-quarter): 601.24%
    • Sales growth (past 5 years): 9.98%
    • Sales growth (quarter-over-quarter): 18.19%

    💡 Why invest in Cigna?

    The Cigna Group's strong position in the healthcare industry offers several potential advantages for investors seeking exposure to this critical sector:

    • Essential service: Health insurance is a must-have, making Cigna's offerings crucial for individuals and businesses.
    • Diversified products: Cigna offers a wide range of health and dental plans, reducing reliance on any single market segment.
    • Innovation focus: Cigna invests in new technologies to improve healthcare access, affordability, and customer experience.
    • Global presence: Operating in over 65 countries allows Cigna to benefit from growth in emerging healthcare markets.

    🐌 Key considerations before investing in Cigna

    However, before investing in The Cigna Group, it's crucial to consider the potential challenges they face:

    • Competitive landscape: The healthcare insurance industry is crowded, with Cigna needing a competitive edge in cost, coverage, and digital experience.
    • Regulatory environment: Changes in government policies or healthcare laws can significantly impact Cigna's products, pricing, and profitability.
    • Rising healthcare costs: Cigna must manage costs effectively while offering comprehensive coverage to customers.
    • Economic downturns: During economic downturns, businesses and individuals might cut back on healthcare spending, impacting Cigna's revenue growth.

    Final thoughts on Cigna

    The Cigna Group's strong brand, experience, diversified products, and focus on innovation paint a promising picture for long-term investors seeking exposure to the essential healthcare sector. However, the competitive landscape, regulatory environment, rising healthcare costs, and economic sensitivity necessitate careful consideration. Thorough research on Cigna's innovation pipeline, their strategies for navigating these challenges, and a clear understanding of your risk tolerance are crucial before adding The Cigna Group to your portfolio. Remember, in today's world, navigating healthcare can be complex, and The Cigna Group strives to be a guiding force. Their story could be a healthy addition to your investment journey.

  • Gilead Sciences (GILD)

    Gilead Sciences is a U.S.-based biopharmaceutical company renowned for its antiviral and oncology therapies. Founded in 1987 in Foster City, California, by Michael L. Riordan, the company has grown into a global leader in its field. In 2024, Gilead reported revenues of $28.75 billion, a 6% increase from the previous year, though net income declined sharply to $480 million due to acquisition-related charges. The company's core business encompasses a diverse portfolio of therapies targeting HIV, hepatitis B and C, and various cancers. Its flagship HIV treatment, Biktarvy, continues to lead in sales, while oncology products like Yescarta and Trodelvy are gaining traction. Gilead is also advancing its pipeline with promising candidates such as lenacapavir for HIV prevention and seladelpar for liver diseases.

    Gilead Sciences financial statements

    Analysts recommendation: 1.87

    Financial Health

    • Return on assets (ROA): 10.58%
    • Return on equity (ROE): 32.51%
    • Return on investment (ROI): 14.44%

    Profitability

    • Gross margin: 78.25%
    • Operating margin: 38.01%
    • Net profit margin: 20.79%

    Growth

    • EPS (past 5 years): -38.13%
    • EPS (current): 4.76
    • EPS estimate (next quarter): 1.96
    • EPS growth (this year): 73.01%
    • EPS growth (next year): 6.63%
    • EPS growth (next 5 years): 25.74%
    • EPS growth (quarter-over-quarter): 131.24%
    • Sales growth (past 5 years): 5.3%
    • Sales growth (quarter-over-quarter): -0.6%

    💡 Why invest in Gilead Sciences?

    Gilead Sciences offers several compelling reasons to consider investing:

    • Strong Product Portfolio: Gilead's established treatments in HIV and hepatitis provide a stable revenue base.
    • Innovative Pipeline: The company is investing in next-generation therapies, including long-acting HIV prevention and novel oncology treatments.
    • Strategic Acquisitions: Recent acquisitions, like that of CymaBay Therapeutics, aim to bolster Gilead's presence in liver diseases and other therapeutic areas.

    🐌 Key considerations before investing in Gilead Sciences

    However, prospective investors should weigh the following challenges:

    • Earnings Volatility: Significant charges from acquisitions have led to fluctuations in net income.
    • Regulatory Risks: Potential changes in healthcare policies, such as cuts to HIV prevention funding, could impact revenues.
    • Market Competition: The biopharmaceutical industry is highly competitive, with rivals developing similar therapies that could challenge Gilead's market share.

    Final thoughts on Gilead Sciences

    Gilead Sciences maintains a strong position in antiviral and oncology treatments, supported by a robust product portfolio and a pipeline of innovative therapies. While recent financial performance has been affected by acquisition-related charges, the company's strategic investments and ongoing research efforts position it for potential long-term growth. Investors should weigh these factors alongside industry risks when considering Gilead as a long-term investment.

  • Labcorp Holdings (LH)

    Labcorp Holdings Inc. is a global life sciences company that provides comprehensive laboratory services and drug development solutions to healthcare providers, pharmaceutical companies, and patients. Founded in 1978 and headquartered in Burlington, North Carolina, Labcorp has established a significant presence in the diagnostics and biopharma sectors. In 2024, the company reported revenues of $13.0 billion, a 7.0% increase from the previous year, and a net income of $746 million, marking a 78.47% rise year-over-year. Labcorp operates through two primary segments: Diagnostics Laboratories and Biopharma Laboratory Services. The Diagnostics Laboratories segment offers routine and specialty testing services, including blood chemistry analyses, urinalyses, and genetic testing, through a vast network of patient service centers and laboratories. The Biopharma Laboratory Services segment provides early development research and central laboratory services, supporting pharmaceutical and biotechnology companies in drug development processes.

    Labcorp Holdings financial statements

    Analysts recommendation: 1.52

    Financial Health

    • Return on assets (ROA): 4.28%
    • Return on equity (ROE): 8.99%
    • Return on investment (ROI): 4.99%

    Profitability

    • Gross margin: 25.87%
    • Operating margin: 8.66%
    • Net profit margin: 5.55%

    Growth

    • EPS (past 5 years): 1.13%
    • EPS (current): 8.67
    • EPS estimate (next quarter): 4.18
    • EPS growth (this year): 10.29%
    • EPS growth (next year): 9.6%
    • EPS growth (next 5 years): 9.81%
    • EPS growth (quarter-over-quarter): -6.22%
    • Sales growth (past 5 years): 3.87%
    • Sales growth (quarter-over-quarter): 5.3%

    💡 Why invest in Labcorp Holdings?

    Labcorp Holdings Inc. offers several compelling reasons to consider investing:

    • Strong Market Position: Labcorp is a leading provider of diagnostic and drug development services, with a broad portfolio catering to various healthcare needs.
    • Robust Financial Performance: The company demonstrated significant revenue and net income growth in 2024, indicating operational efficiency and market demand.
    • Strategic Acquisitions: Labcorp has expanded its capabilities through acquisitions, such as the purchase of certain laboratory testing businesses from OPKO Health, enhancing its services in reproductive and women's health.
    • Innovation and Expansion: The company continues to invest in expanding its test menu and entering new therapeutic areas, including oncology, women's health, autoimmune diseases, and neurology.

    🐌 Key considerations before investing in Labcorp Holdings

    However, prospective investors should weigh the following challenges:

    • Regulatory Risks: Operating in the healthcare sector, Labcorp is subject to stringent regulations, which can impact operations and profitability.
    • Market Competition: The diagnostics and drug development industries are highly competitive, with pressure from both large national laboratories and emerging players.
    • Integration Challenges: Mergers and acquisitions, while beneficial, can pose integration risks and potential disruptions.
    • Economic Sensitivity: Labcorp's business can be influenced by macroeconomic factors that affect healthcare spending and pharmaceutical research investments.

    Final thoughts on Labcorp Holdings

    Labcorp's strong market position, diversified service offerings, and robust financial performance make it a compelling player in the diagnostics and drug development industries. While regulatory and competitive challenges exist, the company's strategic initiatives and focus on innovation position it well for sustained growth.

  • Quest Diagnostics (DGX)

    Quest Diagnostics is a leading provider of diagnostic information services, offering a broad range of laboratory testing and related services to patients, physicians, hospitals, and insurers. Founded in 1967 and headquartered in Secaucus, New Jersey, the company has established a significant presence in the U.S. healthcare sector. In 2024, Quest reported revenues of $9.87 billion, a 6.7% increase from the previous year, and net income of $871 million, up 1.88% year-over-year. The company's core business is structured around two primary segments: Diagnostic Information Services (DIS) and Diagnostic Solutions (DS). DIS encompasses routine clinical testing, advanced diagnostics—including genetic and genomic testing—and health and wellness services for employers and insurers. DS focuses on developing and commercializing diagnostic products and services, including esoteric testing and companion diagnostics.

    Quest Diagnostics financial statements

    Analysts recommendation: 2.19

    Financial Health

    • Return on assets (ROA): 6%
    • Return on equity (ROE): 13.35%
    • Return on investment (ROI): 6.69%

    Profitability

    • Gross margin: 31.71%
    • Operating margin: 14.38%
    • Net profit margin: 8.78%

    Growth

    • EPS (past 5 years): 4.04%
    • EPS (current): 7.91
    • EPS estimate (next quarter): 2.57
    • EPS growth (this year): 8.65%
    • EPS growth (next year): 8.36%
    • EPS growth (next 5 years): 8.27%
    • EPS growth (quarter-over-quarter): 12.47%
    • Sales growth (past 5 years): 5.68%
    • Sales growth (quarter-over-quarter): 12.09%

    💡 Why invest in Quest Diagnostics?

    Quest Diagnostics Incorporated offers several compelling reasons to consider investing:

    • Strong Market Position: As one of the largest diagnostic testing providers in the U.S., Quest has a substantial market share and extensive network.
    • Diversified Service Offerings: The company's broad range of services, from routine tests to advanced diagnostics, caters to various healthcare needs.
    • Consistent Financial Performance: Quest has demonstrated steady revenue and income growth, with a 6.7% revenue increase in 2024.
    • Strategic Acquisitions: The company has expanded its capabilities and market reach through targeted acquisitions, such as the pending acquisition of LifeLabs.

    🐌 Key considerations before investing in Quest Diagnostics

    However, prospective investors should weigh the following challenges:

    • Regulatory Risks: The healthcare industry is subject to stringent regulations, which can impact operations and profitability.
    • Dependence on U.S. Market: With a primary focus on the U.S., Quest may be vulnerable to domestic economic and policy changes.
    • Competitive Pressure: The diagnostic testing market is highly competitive, with pressure from both large national laboratories and regional players.
    • Integration Challenges: Mergers and acquisitions, while beneficial, can pose integration risks and potential disruptions.

    Final thoughts on Quest Diagnostics

    Quest Diagnostics' robust market position, diversified service offerings, and consistent financial performance make it a compelling player in the diagnostic testing industry. While regulatory and competitive challenges exist, the company's strategic initiatives and focus on innovation position it well for sustained growth.

  • Abbott Laboratories (ABT)

    Abbott Laboratories is a global healthcare company specializing in medical devices, diagnostics, nutrition, and branded generic pharmaceuticals. Founded in 1888 and headquartered in Abbott Park, Illinois, the company has established itself as a leader in developing innovative solutions that improve health outcomes worldwide.

    Abbott operates across more than 160 countries, offering a diverse portfolio that includes cutting-edge glucose monitoring systems, cardiovascular devices, rapid diagnostic tests, and well-known nutritional products such as Ensure and Similac. The company is at the forefront of medical advancements, continuously investing in research and development to address some of the most pressing healthcare challenges. With a strong commitment to innovation, quality, and accessibility, Abbott Laboratories continues to shape the future of healthcare, providing life-changing technologies and products that enhance the well-being of millions globally.

    Abbott Laboratories financial statements

    Analysts recommendation: 1.93

    Financial Health

    • Return on assets (ROA): 17.45%
    • Return on equity (ROE): 30.66%
    • Return on investment (ROI): 21.82%

    Profitability

    • Gross margin: 51.42%
    • Operating margin: 16.96%
    • Net profit margin: 31.72%

    Growth

    • EPS (past 5 years): 29.98%
    • EPS (current): 7.71
    • EPS estimate (next quarter): 1.25
    • EPS growth (this year): 10.45%
    • EPS growth (next year): 10.14%
    • EPS growth (next 5 years): 10.34%
    • EPS growth (quarter-over-quarter): 6.7%
    • Sales growth (past 5 years): 6.15%
    • Sales growth (quarter-over-quarter): 3.95%

    💡 Why invest in Abbott Laboratories?

    Abbott's robust profile makes it a tempting pick for investors seeking exposure to the ever-evolving healthcare sector. Here's what fuels its formidable medical toolbox:

    • Healthcare Heavyweight: Abbott boasts a diversified portfolio spanning diagnostics, medical devices, nutrition, and pharmaceuticals. This leadership in multiple healthcare facets translates to consistent revenue streams and mitigates risk by not relying solely on one drug's success.
    • Innovation Alchemist: From futuristic continuous glucose monitors to next-generation heart valves, Abbott invests heavily in R&D, striving to stay ahead of the curve with solutions that redefine diagnoses, treatments, and patient monitoring. This commitment to innovation ensures its offerings remain relevant and future-proofs its operations.
    • Global Guardian: With operations spanning continents, Abbott caters to diverse healthcare needs worldwide and unlocks international growth potential. This global reach provides access to emerging markets with burgeoning healthcare demands, further bolstering its future prospects.
    • Dividend Dynamo: Abbott boasts a strong track record of consistent dividend payments, returning a portion of its profits to shareholders. This income stream coupled with potential capital appreciation provides a compelling reason for long-term investors.

    🐌 Key considerations before investing in Abbott Laboratories

    While Abbott navigates the healthcare labyrinth with its diversified portfolio and innovative solutions, there are some potential side effects to consider before joining this high-stakes journey:

    • Valuation Concerns: Like many established healthcare companies, ABT's stock can be volatile, and the current price might reflect expectations of future drug approvals, clinical trial outcomes, and overall market trends. A cautious approach with a patient, long-term perspective is wise.
    • Regulatory Headwinds: Evolving regulations surrounding drug approvals, healthcare reforms, and pricing policies can impact Abbott's profitability and market access. Close monitoring of regulatory developments and their impact on the sector is crucial.
    • Patent Precipices: Loss of exclusivity for key drugs due to patent expiry can impact revenue streams. Regularly assessing Abbott's pipeline and patent expirations is important for understanding future growth potential.
    • Healthcare Jitters: Macroeconomic factors like healthcare reforms and insurance coverage changes can impact patient access to treatment and indirectly affect Abbott's sales. Diversification in your portfolio mitigates this risk.

    Final thoughts on Abbott Laboratories

    Abbott's diversified portfolio, commitment to innovation, global reach, and consistent dividends paint a potentially promising picture for long-term investors seeking exposure to the dynamic healthcare sector. However, the volatile nature of the stock, regulatory headwinds, patent considerations, and healthcare uncertainties warrant a measured approach. Thorough research, analysis of Abbott's future plans and the healthcare landscape, and a clear understanding of your risk tolerance are crucial before joining this medical expedition. Remember, navigating the intricate terrain of healthcare stocks requires both a discerning eye for cutting-edge solutions and a balanced perspective on potential challenges. Choose wisely, and your portfolio might just find itself feeling healthy alongside the success story of Abbott Laboratories.

  • Amgen (AMGN)

    Amgen Inc. is a leading biotechnology company headquartered in Thousand Oaks, California. Since its founding in 1980, Amgen has focused on developing innovative therapies in areas such as oncology, nephrology, and inflammation. Under the leadership of CEO Robert A. Bradway since 2012, the company has expanded its portfolio and global presence. In 2024, Amgen reported total revenues of $33.4 billion, marking a 19% increase from the previous year. The company's adjusted earnings per share (EPS) reached $20.00, reflecting strong performance across its product lines. Looking ahead, Amgen has provided guidance for 2025, projecting revenues between $34.3 billion and $35.7 billion, with adjusted EPS expected to range from $20.00 to $21.20. Amgen's core business encompasses a diverse portfolio of biologic and biosimilar products. Key therapies include Repatha for cholesterol management, Prolia for osteoporosis, and Enbrel for rheumatoid arthritis. The company is also advancing its pipeline with promising candidates like MariTide, an obesity treatment currently in Phase 3 trials, and IMDELLTRA, an oncology therapy that has shown positive results in recent studies.

    Amgen financial statements

    Analysts recommendation: 2.36

    Financial Health

    • Return on assets (ROA): 6.51%
    • Return on equity (ROE): 105.67%
    • Return on investment (ROI): 9.85%

    Profitability

    • Gross margin: 67.43%
    • Operating margin: 26.26%
    • Net profit margin: 17.49%

    Growth

    • EPS (past 5 years): -10.1%
    • EPS (current): 10.95
    • EPS estimate (next quarter): 5.23
    • EPS growth (this year): 5.11%
    • EPS growth (next year): 3.2%
    • EPS growth (next 5 years): 4.34%
    • EPS growth (quarter-over-quarter): 1616.98%
    • Sales growth (past 5 years): 7.57%
    • Sales growth (quarter-over-quarter): 9.42%

    💡 Why invest in Amgen?

    Amgen offers several compelling reasons to consider investing:

    • Diverse Product Portfolio: Amgen offers a range of established therapies across multiple therapeutic areas, reducing reliance on any single product.
    • Strong Pipeline: The company's investment in research and development has led to a robust pipeline, including potential blockbuster drugs like MariTide.
    • Strategic Acquisitions: The successful integration of Horizon Therapeutics has expanded Amgen's reach in rare diseases and contributed to revenue growth.
    • Shareholder Returns: Amgen has demonstrated a commitment to returning value to shareholders through dividends and share repurchases.

    🐌 Key considerations before investing in Amgen

    However, prospective investors should weigh the following challenges:

    • Patent Expirations: Upcoming patent expirations, such as for Denosumab, could lead to increased competition from biosimilars and impact revenues.
    • Regulatory Challenges: The biotechnology industry faces stringent regulatory environments, which can affect the approval and commercialization of new therapies.
    • Market Competition: Amgen operates in highly competitive markets, with rivals developing similar therapies, potentially impacting market share.
    • Stock Performance: While Amgen's stock has shown a positive trajectory since 2012, the percentage gains have been moderate compared to some peers, which may be a consideration for growth-focused investors.

    Final thoughts on Amgen

    Amgen's strong financial performance in 2024 and its strategic initiatives position the company for continued growth in 2025. Its diversified product portfolio and promising pipeline offer potential for long-term value creation. However, investors should consider factors such as upcoming patent expirations and market competition when evaluating Amgen as an investment opportunity.

  • AstraZeneca (AZN)

    AstraZeneca PLC is a global biopharmaceutical company focused on the discovery, development, and commercialization of prescription medicines, primarily in oncology, cardiovascular, renal, metabolism, respiratory, and immunology. Founded in 1999 through the merger of Sweden's Astra AB and the UK's Zeneca Group, the company is headquartered in Cambridge, United Kingdom. Over the years, AstraZeneca has established itself as one of the world's leading pharmaceutical firms, delivering innovative treatments that address some of the most pressing medical challenges.

    With a strong research and development presence across North America, Europe, and Asia, AstraZeneca is committed to advancing science through cutting-edge drug development and strategic partnerships. The company is known for its groundbreaking work in oncology, with a robust pipeline of targeted therapies that improve patient outcomes. By leveraging advanced biologics, precision medicine, and artificial intelligence, AstraZeneca continues to drive innovation and expand access to life-saving treatments worldwide.

    AstraZeneca financial statements

    Analysts recommendation: 1.35

    Financial Health

    • Return on assets (ROA): 7.45%
    • Return on equity (ROE): 19.81%
    • Return on investment (ROI): 11.28%

    Profitability

    • Gross margin: 72.58%
    • Operating margin: 20.63%
    • Net profit margin: 14.14%

    Growth

    • EPS (past 5 years): 34.63%
    • EPS (current): 2.49
    • EPS estimate (next quarter): 1.1
    • EPS growth (this year): 9.83%
    • EPS growth (next year): 12.82%
    • EPS growth (next 5 years): 11.19%
    • EPS growth (quarter-over-quarter): 33.73%
    • Sales growth (past 5 years): 17.77%
    • Sales growth (quarter-over-quarter): 7.17%

    💡 Why invest in AstraZeneca?

    Several key factors make AstraZeneca an attractive prospect for investors seeking exposure to the growing healthcare sector:

    • Leader in Pharmaceuticals: AstraZeneca ranks among the top ten pharmaceutical companies globally based on sales, boasting a strong market presence and brand recognition.
    • Focus on Innovation and R&D: Their commitment to research and development fuels a steady pipeline of new drugs, ensuring future growth and addressing unmet medical needs.
    • Diverse Product Portfolio: AstraZeneca offers a wide range of medicines across various therapeutic areas, mitigating risk by not relying on a single product or treatment category.
    • Global Reach and Accessibility: Their global presence and focus on affordability programs ensure broader access to their medications, improving healthcare outcomes worldwide.

    🐌 Key considerations before investing in AstraZeneca

    While AstraZeneca's strong market position, focus on R&D, and diverse product portfolio are strengths, there are challenges to consider in the pharmaceutical industry:

    • Drug Development Risks: The research and development process for new drugs is expensive, time-consuming, and fraught with risk. Not all drugs in development make it to market.
    • Patent Expirations: Exclusive marketing rights for certain drugs eventually expire, opening the door to generic competition and potentially impacting revenue.
    • Regulatory Scrutiny: The pharmaceutical industry is heavily regulated, with strict guidelines for drug development, testing, and marketing, potentially impacting development timelines and costs.
    • Drug Pricing and Affordability Debates: The high cost of some medications can spark debate and government intervention, potentially affecting pricing strategies.

    Final thoughts on AstraZeneca

    AstraZeneca's strong market position, focus on innovation, and diverse product portfolio paint a potentially promising picture for long-term investors seeking exposure to the vital healthcare sector. However, the inherent risks of drug development, patent expiries, regulatory hurdles, and pricing debates necessitate a cautious approach. Thorough research, analysis of AstraZeneca's development pipeline, strategies for navigating challenges, and a clear understanding of your risk tolerance are crucial before adding AstraZeneca to your portfolio. Remember, medical advancements are crucial for global well-being. AstraZeneca's ability to deliver innovative and accessible treatments will be key to its continued success. Choose wisely, and your portfolio might find itself aligned with a healthier future alongside the AstraZeneca story.

  • Zoetis (ZTS)

    Zoetis is a global leader in animal health, specializing in the development, manufacturing, and marketing of medicines, vaccines, and diagnostic products for livestock and pets. Founded in 1952 as a subsidiary of Pfizer and later spun off as an independent company in 2013, Zoetis is headquartered in Parsippany, New Jersey. With a presence in over 100 countries, the company plays a crucial role in advancing veterinary medicine and supporting animal care worldwide.

    Zoetis offers a comprehensive portfolio of products designed to prevent and treat diseases in a wide range of animals, including cattle, swine, poultry, dogs, and cats. Its solutions include pharmaceuticals, vaccines, genetic testing, and digital technologies that help veterinarians and farmers improve animal health and productivity. Through continuous innovation and strong industry partnerships, Zoetis remains at the forefront of animal health, contributing to food security and the well-being of companion animals.

    Zoetis financial statements

    Analysts recommendation: 1.48

    Financial Health

    • Return on assets (ROA): 17.7%
    • Return on equity (ROE): 51.85%
    • Return on investment (ROI): 25.04%

    Profitability

    • Gross margin: 69.48%
    • Operating margin: 37.01%
    • Net profit margin: 27.12%

    Growth

    • EPS (past 5 years): 11.91%
    • EPS (current): 5.57
    • EPS estimate (next quarter): 1.61
    • EPS growth (this year): 5%
    • EPS growth (next year): 10.11%
    • EPS growth (next 5 years): 8.4%
    • EPS growth (quarter-over-quarter): 7.88%
    • Sales growth (past 5 years): 8.22%
    • Sales growth (quarter-over-quarter): 1.37%

    💡 Why invest in Zoetis?

    Zoetis' robust profile makes it a tempting pick for investors seeking exposure to the resilient and evolving animal health sector. Here's what fuels its formidable wag of success:

    • Pet Powerhouse: Zoetis boasts a vast inventory of medicines, vaccines, and diagnostics tailored to pets, the fastest-growing segment of the animal health market. This leadership in companion animal care translates to consistent demand and predictable revenue streams, laying a solid foundation for future growth.
    • Beyond Biscuits: Recognizing the diverse needs of all creatures, Zoetis caters to livestock, poultry, and aquaculture with innovative solutions for disease prevention, productivity enhancement, and animal welfare. This diversification mitigates risk and unlocks diverse avenues for growth beyond traditional pet care.
    • Innovation Alchemist: From AI-powered diagnostics to gene-editing therapies, Zoetis invests heavily in R&D, striving to stay ahead of the curve with advanced solutions that redefine animal health. This commitment to innovation ensures its offerings remain relevant and future-proofs its operations.
    • Global Guardian: With operations spanning continents, Zoetis caters to diverse animal needs worldwide and unlocks international growth potential. This global reach provides access to emerging markets with burgeoning pet populations and livestock industries, further bolstering its future prospects.

    🐌 Key considerations before investing in Zoetis

    While Zoetis navigates the veterinary labyrinth with its diverse offerings and global reach, there are some potential tailwags to consider before joining this purr-fect journey:

    • Valuation Concerns: Like many established healthcare companies, ZTS's stock can be volatile, and the current price might reflect expectations of future innovation and market dynamics. A cautious approach with a patient, long-term perspective is wise.
    • Economic Jitters: Global economic downturns can impact spending on pet care and livestock production, potentially hitting Zoetis' profitability. Close monitoring of economic trends and their impact on the animal health sector is crucial.
    • Regulatory Headwinds: Evolving regulations surrounding animal antibiotics and welfare concerns raise potential challenges for some of Zoetis' products and practices. Stay informed about regulatory developments and how Zoetis plans to adapt and comply.
    • Animal Health Risks: Emerging diseases and unforeseen outbreaks in livestock or poultry populations can disrupt business operations and impact profitability. Diversification in your portfolio mitigates this risk.

    Final thoughts on Zoetis

    Zoetis' diverse portfolio, commitment to innovation, global reach, and focus on emerging markets paint a potentially promising picture for long-term investors seeking exposure to the dynamic animal health sector. However, the volatile nature of the stock, economic sensitivity, potential regulatory headwinds, and animal health risks warrant a measured approach. Thorough research, analysis of Zoetis' future plans and the animal health landscape, and a clear understanding of your risk tolerance are crucial before joining this veterinary expedition. Remember, navigating the intricate terrain of animal health stocks requires both a discerning eye for cutting-edge solutions and a balanced perspective on potential challenges. Choose wisely, and your portfolio might just find itself wagging its tail alongside the success story of Zoetis.

If you are interested in other stock categories, check out my other lists of the best dividend utility, tech, retail, industrial, healthcare, financial, energy, basic materials stocks.