Finding Income in the Not So Healthy Healthcare Sector

Looking at our healthcare stock ratings, it becomes obvious the sector is struggling. The majority (73.9 percent) of stocks are either D or E rated (SELL), and only 7.4 percent of them are a BUY, 18.7 percent a HOLD. And a scant 0.6 percent were strong enough to earn an A rating.

But even in a struggling sector, a handful of gems can be found. We used our Weiss Ratings stocks screener to uncover those that will deliver a high dividend for you.

First, we pulled up all BUY rated healthcare stocks, and then selected the ones with a dividend yield above the sector average of 2.11 percent. Here are the stocks that were returned:

Ten Highest Dividend Payers

Sienna Senior Living Inc., a Canadian company, came in as the top dividend payer with a 5.47 percent. The stock was recently upgraded from a C+ to a B-.

Extendicare Inc., another Canadian stock, took the second spot as the highest dividend payer with 5.21 percent. It was upgraded from a C to B- at the beginning of August, 2016, and has been there for the last two months.

Merck & Co. and Johnson & Johnson, the two well-known U.S. companies, made it to the top ten dividend payer list with 2.96 percent and 2.64 percent, respectively.

Although rated the highest (B+) on the list, National HealthCare Corporation came in as the eight highest dividend payer in the BUY category with 2.57 percent.

Besides the above average dividend yield, nearly all companies on the list have positive one-, three-, and five-year returns. Abbot Laboratories is an exception, with a negative 0.12 percent return over the last year. AbbVie Inc. does not show a five-year return as it is only a four-year old company.

So, even when the big picture looks grim, there are a handful of exceptions that may be a good investment option for you.

Top Tech Stocks
See All »
B
MSFT NASDAQ $401.02
B
NVDA NASDAQ $117.30
B
ORCL NYSE $161.56
Top Consumer Staple Stocks
See All »
B
WMT NYSE $95.98
B
Top Financial Stocks
See All »
B
B
JPM NYSE $251.53
B
V NYSE $352.68
Top Energy Stocks
See All »
Top Health Care Stocks
See All »
B
ABT NYSE $137.71
B
MCK NYSE $639.62
Top Real Estate Stocks
See All »
Weiss Ratings