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12 Healthcare Dividend Stocks With Gaining Earnings Momentum

Published 04/02/2012, 06:07 AM
Updated 07/09/2023, 06:31 AM

Growth stocks are wonderful especially if they are at the beginning of their growth path. Growth normally creates shareholder value and if the company doesn’t need much money to finance the growth, you can benefit already within the early stage.

In order to find some growth opportunities within the healthcare sector with current dividend payments, I screened the healthcare sector by stocks with a recent earnings growth of more than ten percent (past five years). In order to catch up only those stocks with a gaining earnings growth, I observed only stocks with a quarter over quarter sales and earnings per share growth of more than ten percent. Exactly twelve companies fulfilled these criteria. All of them are recommended to buy.

Here are my favorites:

Novo Nordisk A/S (NYSE:NVO) has a market capitalization of $76.84 billion. The company employs 32,136 people, generates revenues of $11,901.27 million and has a net income of $3,066.89 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4,460.15 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).

Financial Analysis:
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 $5.38. Last fiscal year, the company paid $2.51 in form of dividends to shareholders.

Market Valuation:
Here are the price ratios of the company: The P/E ratio is 25.77, P/S ratio 5.50 and P/B ratio 11.51. Dividend Yield: 1.81 percent. The beta ratio is 0.55.
Long-Term Stock History Chart Of Novo Nordisk A S (ADR)
Long-Term Dividends History of Novo Nordisk A S (ADR) (NVO) (Click to enlarge)
Long-Term Dividend Yield History of Novo Nordisk A S (ADR) (NYSE NVO)
Herbalife (NYSE:HLF) has a market capitalization of $8.00 billion. The company employs 5,100 people, generates revenues of $3,454.54 million and has a net income of $412.58 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $634.12 million. Because of these figures, the EBITDA margin is 18.36 percent (operating margin 16.28 percent and the net profit margin finally 11.94 percent).

Financial Analysis:
The total debt representing 14.08 percent of the company’s assets and the total debt in relation to the equity amounts to 36.35 percent. Due to the financial situation, a return on equity of 78.78 percent was realized. Twelve trailing months earnings per share reached a value of $3.31. Last fiscal year, the company paid $0.73 in form of dividends to shareholders.

Market Valuation:
Here are the price ratios of the company: The P/E ratio is 20.81, P/S ratio 2.33 and P/B ratio 14.23. Dividend Yield: 1.74 percent. The beta ratio is 1.58.
Long-Term Stock History Chart Of Herbalife Ltd
Long-Term Dividends History of Herbalife Ltd
Long-Term Dividend Yield History of Herbalife Ltd
Stryker Corporation (NYSE:SYK) has a market capitalization of $21.15 billion. The company employs 21,241 people, generates revenues of $8,307.00 million and has a net income of $1,345.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,167.00 million. Because of these figures, the EBITDA margin is 26.09 percent (operating margin 20.30 percent and the net profit margin finally 16.19 percent).

Financial Analysis:
The total debt representing 14.25 percent of the company’s assets and the total debt in relation to the equity amounts to 23.01 percent. Due to the financial situation, a return on equity of 18.11 percent was realized. Twelve trailing months earnings per share reached a value of $3.46. Last fiscal year, the company paid $0.75 in form of dividends to shareholders.

Market Valuation:
Here are the price ratios of the company: The P/E ratio is 16.05, P/S ratio 2.55 and P/B ratio 2.75. Dividend Yield: 1.53 percent. The beta ratio is 0.86.
Long-Term Stock History Chart Of Stryker Corporation
Long-Term Dividends History of Stryker Corporation
Long-Term Dividend Yield History of Stryker Corporation
Shire Plc. (NASDAQ:SHPGY) has a market capitalization of $17.77 billion. The company employs 5,251 people, generates revenues of $4,263.40 million and has a net income of $862.50 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,404.00 million. Because of these figures, the EBITDA margin is 32.93 percent (operating margin 26.02 percent and the net profit margin finally 20.23 percent).

Financial Analysis:
The total debt representing 17.24 percent of the company’s assets and the total debt in relation to the equity amounts to 34.54 percent. Due to the financial situation, a return on equity of 30.69 percent was realized. Twelve trailing months earnings per share reached a value of $4.54. Last fiscal year, the company paid $0.40 in form of dividends to shareholders.

Market Valuation:
Here are the price ratios of the company: The P/E ratio is 20.88, P/S ratio 4.25 and P/B ratio 5.58. Dividend Yield: 0.48 percent. The beta ratio is 0.77.
Long-Term Stock History Chart Of Shire Plc
Long-Term Dividends History of Shire Plc
Long-Term Dividend Yield History of Shire Plc
Take a closer look at the full table of healthcare dividend stocks with gainin momentum. The average price to earnings ratio (P/E ratio) amounts to 20.93 and forward P/E ratio is 15.77. The dividend yield has a value of 0.95 percent. Price to book ratio is 5.16 and price to sales ratio 3.22. The operating margin amounts to 20.15 percent. Sales increased 19.81 percent compared to the figures from the same quarter last year (16.53 percent 5-year average) and the earnings per share grew 52.07 percent quarter over quarter (25.07 percent 5-year average).

Here is the full table with some fundamentals (TTM):
12 Healthcare Dividend Stocks With Gaining Earnings Momentum 1

Related stock ticker symbols: 
NVO, HLF, USPH, SYK, MR, MLAB, RDY, UHS, SHPGY, CMN, PRGO, COO

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