Often overlooked, especially in times of AI revolution, the healthcare market is always a safe bet for investors, as it is a multiple trillion, highly innovative industry with no drawbacks like lack of demand per se.
Healthcare stocks, especially well-known ones, are no-brainer investments for traders. Their potential is high, and over the long term, their returns are multiplefold.
With this in mind, Finbold picked out three healthcare stocks for investors to purchase and hold forever.
Picks for you
Johnson & Johnson (NYSE: JNJ)
A healthcare giant known for brands like Tylenol and Band-Aid, Johnson & Johnson (NYSE: JNJ), recently split its consumer business into Kenvue. Now focused on pharmaceuticals and medical tech, it aims for higher growth.
The move brought in cash for acquisitions like Shockwave Medical and Ambrx Biopharma. With strong financials and a AAA credit rating, it offers a solid 3.3% dividend yield, growing at 6% annually.
While not a high-growth stock, its current price presents an excellent opportunity for investors, trading at a discount of 14 times earnings.
Abbott Laboratories (NYSE: ABT)
Abbott Labs (NYSE: ABT), a healthcare veteran, has diversified its focus into nutrition products, diagnostics, medical devices (particularly cardiovascular health and diabetes), and generic drugs for international markets.
This diverse portfolio has fueled consistent dividend growth for over 50 years. Despite a current dividend yield of 2.1%, it has seen an average annual increase of 6.5% over the past five years, with a stable payout ratio of 70%.
Analysts predict a solid 9% annual earnings growth over the next three to five years, potentially leading to further dividend increases while maintaining a stable payout ratio.
With a strong emphasis on prevalent health concerns like heart disease and diabetes, Abbott Labs is well-positioned for continued success, particularly in its leadership role in cardiovascular health and diabetes treatment devices.
Pfizer (NYSE: PFE)
Pfizer’s (NYSE: PFE) stock journey has been unusual recently. It saw a surge in business during the pandemic as a leading COVID-19 vaccine manufacturer but faced a significant decline as the pandemic waned.
Despite this, Pfizer remains promising for investors. It used its pandemic profits to acquire new assets, including a $43 billion merger with oncology company Seagen.
Analysts anticipate Pfizer’s earnings to grow by 10% annually over the next three to five years.
Despite PFE stock’s decline, Pfizer offers a generous 6% dividend yield, backed by healthy growth prospects and $3 billion in cash reserves.
Given their enormous presence in the healthcare industry, these stocks are positioned to grow in the future and lead the innovation sector, which could cause a surge in their prices.
Buy stocks now with eToro – trusted and advanced investment platform
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
