Top 3 Healthcare Dividend Stocks - Dividends for Passive Income

TL;DR

In this video, Jimmy discusses his top three dividend stocks in the health care sector, focusing mostly on US stocks due to limited options in Europe. Johnson & Johnson, Cardinal Health, and Pfizer are highlighted for their strong dividend yields, consistent dividend per share growth, and solid dividend coverage ratios.

Transcript

Hi, I'm Jimmy in this video, I'm going to walk through my top three dividend stocks from the health care sector. This video is part of our passive income from dividend series where we're going through each of the 11 GICS sectors and try to identify a handful of dividend stocks that could do well and ultimately get our get. Each of us closer to our ... Read More

Key Insights

• 🥺 European dividend stocks in the health care sector are limited, leading to a focus on US stocks.
• 🥳 Johnson & Johnson, Cardinal Health, and Pfizer exhibit consistent dividend growth and strong dividend coverage ratios.
• 🥳 Dividend coverage ratio allows for potential growth or resilience during challenging times.
• 🪜 McKesson and Glaxo SmithKline did not meet all the criteria but are added to the dividend watchlist.

Questions & Answers

Q: What criteria did Jimmy use to select the dividend stocks in the health care sector?

Jimmy considered dividend yield above 2 percent, strong dividend coverage ratio, and potential dividend growth as key factors for selecting the stocks.

Q: Are there any European dividend stocks that meet Jimmy's criteria?

Jimmy asks viewers to share any European dividend stocks that meet his criteria in the comments section.

Q: Why is dividend coverage ratio important in selecting dividend stocks?

Dividend coverage ratio provides an indication of a company's ability to sustain its dividend payments, and a higher ratio allows companies to reinvest in growth or navigate potential challenges.

Q: What advantage does Cardinal Health's dividend coverage ratio offer?

Cardinal Health's dividend coverage ratio of almost 2x provides a buffer in case the company faces challenges, allowing it to continue paying dividends.

Q: How do Pfizer's dividend coverage ratios compare to other stocks?

While Pfizer's 2018 dividend coverage ratio was the lowest among the three stocks mentioned, analysts expect it to reach 2x in 2019, indicating better coverage.

Summary & Key Takeaways

• Jimmy explores his top three dividend stocks in the health care sector, primarily focusing on US stocks.

• Johnson & Johnson is highlighted for its diverse range of products, consistent dividend per share growth, and strong dividend coverage ratio.

• Cardinal Health, one of the leading pharmaceutical and medical distributors, is recognized for its consistent dividends and improved earnings per share.

• Pfizer is praised for its solid dividend yield, stable dividends per share, and overall annual dividend coverage.