Healthcare Stocks to Watch: Medtronic, UnitedHealth, AbbVie

Healthcare stocks show promise as Medtronic, UnitedHealth, and AbbVie strengthen dividends and growth prospects. Investors could benefit long-term from these leading companies in an evolving healthcare market.

Date: 11-01-2025

AI Rating: 7

Medtronic's Growth & Dividends
Medtronic has a history of stability with its sales not dipping more than 10% since the 1980s. The company is in the process of becoming a Dividend King, having raised its dividend for 47 consecutive years. Its payout ratio of 65% suggests a secure future dividend, with organic revenue growth at a mid-single-digit rate. Analysts project a 6% annual earnings growth, supporting a stable investment outlook.

UnitedHealth Group's Market Position
UnitedHealth, a giant in the healthcare system, generates over $389 billion in annual revenue. With 15 consecutive annual dividend increases averaging 15%, it maintains a solid cash flow ratio of 56% dedicated to dividends. The stock has seen challenges, particularly after the loss of its CEO, but analysts still predict a 15% growth in earnings, which is promising for dividend fluctuations and share price recovery in the future.

AbbVie's Innovation & Challenges
AbbVie has remained resilient with a diverse drug portfolio post its independence from Abbott Labs. The company boasts a high dividend yield of 3.4% and has a reasonable payout ratio of 70%. However, AbbVie faced setbacks with one of its drugs not meeting expectations but is still projected for near 9% earnings growth moving forward. This indicates a potential recovery, making AbbVie a viable investment option despite recent declines in stock price.

Stocks: MDT UNH ABBV