If you compare medical equipment and devices companies to the S&P 500 Index, you will notice that healthcare equipment companies have recently doubled the performance of the broader market. Although that cannot be said of every healthcare sector, medical equipment has some unique and interesting attributes which make this sector one of the most compelling. The global expansion of the middle class in recent years has led to a higher demand for healthcare equipment and quality healthcare worldwide, and this well entrenched trend doesn’t look set to go away any time soon. Aging populations in Western countries is not only causing increased demands for more RSN to MSN programs and MSN online graduates; they are also contributing to the rising demand for healthcare and medical products worldwide. We’ve listed some of the best healthcare stocks to consider investing in.
Danaher Corporation (DHR)
Danaher Corporation (DHR) has been a manufacturer of industrial, commercial and medical products for over three decades. Initially it viewed diversification into niche sectors as a consistent revenue building strategy, but as it experienced more growth, DHR saw an opportunity to drill down and make its mark in a range of growing sectors. Earlier this year, DHR introduced its Fortiv Corp (NYSE:FTV) division as a separate company. By grouping both industrial and manufacturing equipment and diagnostics under a different company, the more dynamic healthcare sector has been given more room to run. DHR shareholders can get one share of FTV for each pair of DHR shares that they own.
GlaxoSmithKline (GSK) is not only one of the best healthcare stocks to invest in today; it’s also one of the best dividend stocks to purchase today across all industries. GSK boasts the highest dividend yield on today’s list, and sports a 5.7% yield that makes it the perfect choice for serious income investors. GSK stock investors may currently be down, trading at just seven times earnings due to declining revenue over the past four years since GSK lost patent protection for asthma treatment Advair. However, this doesn’t mean that GSK isn’t one of the best healthcare stocks to invest in – in the next four years, the company hopes to file for regulatory approval for at least twenty new drugs.
Another huge pharmaceutical company, Pfizer is a no-brainer for the individual investor. Their bold decision to purchase Allergan (AGN) for $160bn may not have been one of the most popular moves with lawmakers in Washington, however, for long-term investors, it became one of the best stocks to buy as the move resulted in a dramatic drop in Pfizer’s tax bill. The move allowed Pfizer to pay taxes in Ireland, where Allergan is based, at a drastically lower rate than in the U.S. However, bear in mind that Pfizer only has six years of dividend stocks, when compared to competitors such as Johnson & Johnson (JNJ), which boasts 53 years.
The healthcare industry is booming, and in the stock market, the choice is endless when it comes to making an investment. These are some of the best investment choices to make in healthcare stocks.
While his background is mostly related to trading stocks, he recently gained interest in real estate crowdfunding with Fundrise.