5 top US dividend health stocks to explore: ABBV, CAH, OGN, AMGN, MRK

The US healthcare sector has gained significant attention recently, with a notable number of investors exploring health stocks amid rising monkeypox cases worldwide. In the past month, the healthcare segment has witnessed a growth of around eight per cent. 

Amid the ongoing earnings season, UnitedHealth Group Incorporated, one of the largest US healthcare firms by market valuation, reported robust quarterly earnings and raised its full-year guidance on Friday, July 15.

Let’s take a look at some dividend-paying healthcare stocks to explore amid recessionary fears.

AbbVie Inc. (NYSE: ABBV)

Stocks of AbbVie Inc., a research-based biotechnology firm based in North Chicago, Illinois, grew by 10.57 per cent this year.

The company’s market cap is US$262.62 billion. Its price-to-earnings (P/E) ratio and forward one-year P/E ratio are 21.38 and 10.81, respectively. Its current dividend yield is 3.77 per cent, and its annualized dividend is US$5.64.

In the last 52 weeks, ABBV notched the highest and lowest prices of US$175.91 and US$105.56, respectively. Its trading volume was 5,647,075 on July 19.

In Q1 FY22, its net revenue rose 4.1 per cent YoY to US$13.53 billion, and its net earnings came in at US$4.49 billion, or US$2.51 per diluted share.

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Cardinal Health, Inc. (NYSE: CAH)

Cardinal Health, a healthcare services firm based in Dublin, Ohio, noted a stock price growth of 7.06 per cent this year. Its annualized dividend presently stands at US$1.983.

In Q3 FY22, Cardinal Health's revenue soared 14 per cent YoY to US$44.8 billion, and its net loss was US$1.39 billion, or US$5.05 per diluted share.

Organon & Co. (NYSE: OGN)

Stocks of Organon & Co., a pharmaceutical firm that specializes in reproductive medicine, contraception, and other related fields, grew 1.32 per cent this year. Its annualized dividend stands at is US$1.12.

OGN stock reached the highest price of US$39.48 and the lowest price of US$28.50 in the past 52 weeks. I

The company recorded a revenue of US$1.56 billion in Q1 FY22, up four per cent YoY. Organon's net income stood at US$ 348 million in this quarter, against that of US$ 399 million in Q1 FY21.

Amgen Inc. (NASDAQ: AMGN)

Amgen Inc, a Thousand Oaks, California-based biotechnology firm, saw its stocks grow 9.1 per cent this year. The company's market cap is US$ 131.60 billion, and its annualized dividend is US$ 7.76.

The AMGN stock’s highest price was US$258.45, and the lowest price was US$198.64 in the last 52 weeks. 

Amgen's revenue rose six per cent YoY to US$6.2 billion in Q1, FY22. On a GAAP basis, its net income was US$1.47 billion, or US$2.68 per share, versus US$1.64 billion, or US$2.83 per share, in Q1, FY21.

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Merck & Company, Inc. (NYSE: MRK)

Merck & Co, a pharmaceutical firm headquartered in Kenilworth, New Jersey, noted a stock price surge of 20.15 per cent in 2022.

Its market capitalization is US$227.01 billion, and its forward P/E one-year ratio is 12.62. Its current yield is 2.99 per cent, and its annualized dividend is US$2.76.

MRK stock notched the highest and lowest prices of US$95.72 and US$70.89, respectively, in the past 52 weeks.

In Q1 FY22, Merck & Co's sales rose 50 per cent YoY to US$15.90 billion, and its GAAP net income surged 57 per cent YoY to US$4.31 billion.

Bottom line

Healthcare players are generally expected to weather economic downturns better than others, which could be another factor contributing to the sector's growth during decades-high inflation and rising recession fears. However, investors should closely evaluate the risks before exploring such stocks on the equity market.