10 Healthcare Dividend Growth Stocks Poised For Exceptional Dividend Increases

Article revealed on Could twentieth, 2025 by Bob Ciura

The healthcare sector is dwelling to a number of the hottest dividend shares in our funding universe.

The significance of healthcare within the lives of many shoppers makes this sector probably the most steady and recession-resistant in all the inventory market, and permits well-managed healthcare firms to lift their dividends yr in and yr out.

Clearly, this sector holds enchantment for dividend development buyers.

To that finish, we’ve compiled a listing of over 300 healthcare shares (together with vital investing metrics like price-to-earnings ratios and dividend yields) which you’ll obtain beneath:

10 Healthcare Dividend Growth Stocks Poised For Exceptional Dividend Increases

Nonetheless, the healthcare sector has seen elevated volatility in current weeks.

On Could twelfth, 2025, President Trump issued an government order that makes an attempt to equalize the value folks in the USA pay for prescribed drugs relative to different developed nations.

Critically, the chief order additionally goals to open an avenue for People to purchase medicine instantly from producers, bypassing worth will increase imposed by intermediaries.

So, what does this imply for prescription drugs and well being insurers within the U.S. over the subsequent a number of years? The brief reply is that the long run stays unsure.

That’s as a result of there’s no assure this government order can have the supposed impact. Authorized challenges to the 2025 government order are anticipated, and the place issues will land just isn’t attainable to know with any certainty.

Primarily based on the above evaluation, and market costs for the reason that announcement, this government order just isn’t anticipated to considerably have an effect on pharmaceutical firms.

For buyers, this spells alternative. The next 10 healthcare dividend shares have turn out to be extra enticing attributable to their current worth declines, and will proceed to lift their dividends over the subsequent a number of years.

Observe: UnitedHealth Group (UNH) was excluded from this evaluation, as the corporate is reportedly beneath investigation by the Division of Justice for attainable Medicare fraud.

Desk of Contents

The desk of contents beneath permits for simple navigation. The shares are listed by 5-year anticipated returns, in ascending order.

Healthcare Dividend Progress Inventory #10: Perrigo Firm plc (PRGO)

Annual Anticipated Returns: 13.6%

Perrigo operates within the healthcare sector as a producer of over-the-counter shopper merchandise. Its Client Self-Care Americas phase is comprised of the U.S., Mexico and Canada shopper healthcare companies.

The Client Self-Care Worldwide phase consists of branded shopper healthcare enterprise primarily in Europe, but additionally Australia and Israel. The corporate generates ~$4.4 billion in annual income.

On Could seventh, 2025, Perrigo reported first quarter outcomes for the interval ending March thirty first, 2025. For the quarter, income declined 3.7% to $1.04 billion, which was $43 million beneath estimates. Adjusted earnings-per-share of $0.60 in contrast very favorably to $0.29 within the prior yr and was $0.03 forward of estimates.

A lot of the decline in income was associated to divested enterprise, exited product strains, and unfavorable foreign money change charges. Natural income decreased 0.4% for the quarter.

Client Self-Care Americas’ natural income fell 3.6% as enhancements in Diet and Higher Respiratory had been greater than offset by the divesting of decrease margin merchandise, the stocking up of being pregnant prevention merchandise within the prior yr, and weaker demand for Digestive Well being.

Click on right here to obtain our most up-to-date Certain Evaluation report on PRGO (preview of web page 1 of three proven beneath):

Healthcare Dividend Progress Inventory #9: Cigna Group (CI)

Annual Anticipated Returns: 15.1%

Cigna is a number one supplier of insurance coverage services. The corporate’s merchandise embody dental, medical, incapacity and life insurance coverage that it gives by employer-sponsored, government-sponsored, and particular person protection plans.

Cigna operates 4 enterprise segments, together with Evernorth, which gives pharmacy providers and profit administration, U.S. Medical, which gives business and authorities medical health insurance, Worldwide Markets and Group Incapacity.

Evernorth contributes ~80% of annual revenues whereas Cigna Healthcare accounts for a lot of the remainder. Cigna has annual revenues of ~$250 billion.

On Could 2nd, 2025, Cigna reported first quarter outcomes for the interval ending March thirty first, 2025. For the quarter, income grew 14.2% to $65.45 billion, which was a staggering $5.1 billion forward of estimates.

Adjusted earnings-per-share of $6.74 in contrast favorably to adjusted earnings-per-share of $6.47 within the prior yr and was $0.39 higher than anticipated.

For the quarter, whole buyer relationships had been unchanged at 182.2 million from the identical interval a yr in the past, however this was down from 186.8 million in This fall 2024.

Click on right here to obtain our most up-to-date Certain Evaluation report on CI (preview of web page 1 of three proven beneath):

Healthcare Dividend Progress Inventory #8: Elevance Well being Inc. (ELV)

Annual Anticipated Returns: 15.5%

Elevance Well being Inc., previously generally known as Anthem, Inc., is a healthcare advantages firm has greater than 47 million members by its plans.

The corporate gives managed plans to all kinds of markets, together with particular person, business, Medicare and Medicaid. Its two largest buyer teams are authorities (~60% of annual gross sales) and business enterprise (~30% of gross sales). Elevance has annual gross sales of $175 billion.

On January twenty second, 2025, Elevance raised its quarterly dividend 4.9% to $1.71, extending the corporate’s dividend development streak to fifteen consecutive years.

On April twenty second, 2025, Elevance reported first quarter outcomes for the interval ending March thirty first, 2025. For the quarter, income grew 14.6% to $48.8 billion, which topped estimates by $2.55 billion. Adjusted earnings-per-share of $11.97 in contrast very favorably to adjusted earnings-per-share of $10.64 within the prior yr and was $0.49 greater than anticipated.

Income development was primarily a results of greater premium yields within the Well being Advantages, development in Medicare Benefit and Particular person ACA memberships, and will increase in product income for CarelonRx. These beneficial properties had been as soon as once more offset by a discount in Medicaid membership.

Click on right here to obtain our most up-to-date Certain Evaluation report on ELV (preview of web page 1 of three proven beneath):

Healthcare Dividend Progress Inventory #7: Thermo Fisher Scientific (TMO)

Annual Anticipated Returns: 16.1%

Thermo Fisher Scientific Inc. stands as the worldwide forefront in addressing intricate analytical challenges, empowering its clientele to expedite developments in life sciences analysis, improve affected person diagnostics, and elevate effectivity throughout worldwide laboratories.

The corporate’s operational segments are Life Sciences Options (21%), Analytical Devices (16%), Specialty Diagnostics (10%), and Laboratory Merchandise and Biopharma (53%).

Thermo Fisher generates round $43 billion in annual gross sales and is predicated in Waltham, Massachusetts. On February nineteenth, 2025, Thermo Fisher raised its dividend by 10% to a quarterly price of $0.43.

On April twenty third, 2025, Thermo Fisher posted its Q1 outcomes for the interval ending March thirty first, 2025. Revenues got here in at $10.36 billion, up 1% organically in comparison with final yr, with solely a slight contribution from M&A. Progress was achieved regardless of two fewer promoting days and headwinds from the runoff of pandemic-related income.

The adjusted working earnings margin held agency at 21.9%, down simply barely from final yr’s 22.0%, reflecting continued strategic investments and FX headwinds. Because of sturdy execution, adjusted EPS for the quarter rose by 1% to $5.15.

Click on right here to obtain our most up-to-date Certain Evaluation report on TMO (preview of web page 1 of three proven beneath):

Healthcare Dividend Progress Inventory #6: Bristol-Myers Squibb (BMY)

Annual Anticipated Returns: 16.5%

Bristol-Myers Squibb was created when Bristol-Myers and Squibb merged on October 4th, 1989. This main drug maker of cardiovascular and anti-cancer therapeutics has annual revenues of about $46 billion.

On December eleventh, 2024, Bristol-Myers raised its quarterly dividend 3.3% to $0.62.

On April twenty fourth, 2025, Bristol-Myers reported first quarter outcomes for the interval ending March thirty first, 2025. For the quarter, income declined 6% to $11.2 billion, however this was $490 million above estimates.

Adjusted earnings-per-share of $1.80 in comparison with -$4.40 within the prior yr and was $0.30 higher than anticipated. The corporate suffered a steep earnings-per-share loss in Q1 2024.

Adjusting for unfavorable foreign money change, income fell 4% for the quarter. U.S. revenues declined 7% to $7.9 billion. Worldwide was down 2% to $3.3 billion, however income grew 2% when excluding foreign money change.

Revlimid, which treats myeloma, decreased 44% to $936 billion attributable to generic competitors.

Bristol-Myers supplied revised steering for 2025 as properly. Adjusted earnings-per-share are projected to be in a variety of $6.70 to $6.90 for the yr, up from $6.55 to $6.85 beforehand.

Click on right here to obtain our most up-to-date Certain Evaluation report on BMY (preview of web page 1 of three proven beneath):

Healthcare Dividend Progress Inventory #5: Merck & Co. (MRK)

Annual Anticipated Returns: 16.6%

Merck & Firm is without doubt one of the largest healthcare firms on this planet. Merck manufactures prescription medicines, vaccines, biologic therapies, and animal well being merchandise.

Merck employs 68,000 folks world wide and generates annual revenues of greater than $63 billion.

Supply: Investor Presentation

On April twenty fourth, 2025, Merck reported first quarter outcomes. For the quarter, income declined 1.9% to $15.5 billion, however topped expectations by $170 million. Adjusted earnings-per-share was $2.22 in comparison with $2.07 the prior yr and beat estimates by $0.08.

Keytruda, which treats cancers similar to melanoma that can’t be eliminated by surgical procedure and non-small cell lung most cancers, continues to be the important thing driver of development for the corporate as gross sales for the drug had been greater by 4% to $7.2 billion throughout the interval. The product generated $29.5 billion in 2024, up from $25 billion in 2023 and $20.9 billion in 2022.

Click on right here to obtain our most up-to-date Certain Evaluation report on MRK (preview of web page 1 of three proven beneath):

Healthcare Dividend Progress Inventory #4: Eli Lilly & Co. (LLY)

Annual Anticipated Returns: 16.9%

Eli Lilly develops, manufactures, and sells prescription drugs world wide, and has about 47,000 staff globally. Eli Lilly has annual income of $59 billion.

On Could 1st, 2025, Eli Lilly reported first quarter outcomes for the interval ending March thirty first, 2025. For the quarter, income grew 45.2% to $12.7 billion, which was in-line with estimates.

Adjusted earnings-per-share of $3.34 in contrast very favorably to adjusted earnings-per-share of $2.58 within the prior yr, however this was $0.12 decrease than anticipated.

Supply: Investor Presentation

Volumes company-wide had been up 53% for the interval, however pricing was decrease by 6%. U.S. income elevated 49% to $8.49 billion, as quantity was up 57% whereas pricing declined 7%. Worldwide revenues grew 38% to $4.24 billion as volumes improved 46%.

Income for Mounjaro, which helps sufferers with weight administration and is the corporate’s high gross product, totaled $3.84 billion, up from $1.81 billion a yr in the past. Demand stays very excessive for the product.

Zepbound, which can also be used to deal with sufferers with weight problems, had income of $2.31 billion for the quarter in comparison with simply $517 million within the prior yr. This product launched in November of 2023 and has seen spectacular development since.

Verzenio, which treats breast most cancers, grew 10% to $1.16 billion.

Click on right here to obtain our most up-to-date Certain Evaluation report on LLY (preview of web page 1 of three proven beneath):

Healthcare Dividend Progress Inventory #3: Pfizer Inc. (PFE)

Annual Anticipated Returns: 18.2%

Pfizer Inc. is a worldwide pharmaceutical firm specializing in prescribed drugs and vaccines. Pfizer’s high merchandise are Eliquis, Prevnar household, Paxlovid, Comirnaty, Vyndaqel household, Ibrance, and Xtandi. Pfizer had income of $63.6B in 2024.

Pfizer reported Q1 2025 outcomes on April twenty ninth, 2025. Firm-wide income fell 8% operationally and adjusted diluted earnings per share climbed 12% to $0.92 versus $0.82 on a year-over-year foundation.

The income decline was due to a steep drop in Plaxlovid gross sales on changes in prior years and producer reductions from the IRA Medicare Half D Redesign, offset by rising income from the prevailing portfolio, and value financial savings.

International Biopharmaceuticals gross sales declined 8% led by a lower in Major Care (-20%), offset by beneficial properties in Specialty Care (+6%), and Oncology (+7%).

Click on right here to obtain our most up-to-date Certain Evaluation report on PFE (preview of web page 1 of three proven beneath):

Healthcare Dividend Progress Inventory #2: Novo Nordisk (NVO)

Annual Anticipated Returns: 18.7%

Novo Nordisk A/S ADR is a big international pharmaceutical firm headquartered in Denmark. The corporate focuses on two core enterprise segments: Diabetes & Weight problems Care and Uncommon Ailments.

The Diabetes & Weight problems Care phase manufactures insulin, associated supply methods, oral anti-diabetic merchandise, and merchandise to deal with weight problems. The Uncommon Ailments phase manufactures merchandise for hemophilia and different persistent ailments. Novo Nordisk derives ~92% of income from diabetes and weight problems.

Novo Nordisk reported glorious Q1 2025 outcomes on Could seventh, 2025. Firm-wide gross sales had been up 19% in Danish kroner to and diluted earnings per share (“EPS”) rose 15% on a year-over-year foundation.

Diabetes & Weight problems gross sales elevated 21% pushed by will increase in Ozempic and Rybelsus (GLP-1), Wegovy (weight problems), long-acting insulin, and fast-acting insulin, offset by decrease gross sales for premix insulin, Saxenda (weight problems), Victoza (GLP-1), and flat human insulin.

The Uncommon Illness phase gross sales rose 5% attributable to rising uncommon blood and endocrine problems medicine. The agency is increasing its blockbuster GLP-1 and weight problems medicine to different indications and dosing sizes.

The corporate lowered its outlook to 13 – 21% gross sales development and 16%- 24% working revenue development in 2025.

Click on right here to obtain our most up-to-date Certain Evaluation report on NVO (preview of web page 1 of three proven beneath):

Healthcare Dividend Progress Inventory #1: Becton Dickinson & Co. (BDX)

Annual Anticipated Returns: 18.9%

Becton, Dickinson & Co., or BD, is a worldwide chief within the medical provide business. The corporate generates virtually $22 billion in annual income, with roughly 43% of revenues coming from outdoors of the U.S.

BD consists of three segments. Merchandise offered by the Medical Division embody needles for drug supply methods, and surgical blades. The Life Sciences division gives merchandise for the gathering and transportation of diagnostic specimens. The Intervention phase consists of a number of of the merchandise produced by what was Bard.

On Could 1st, 2025, BD reported outcomes for the second quarter of fiscal yr 2025, which ended March thirty first, 2025. For the quarter, income grew 4.5% to $5.3 billion, which was $50 million lower than anticipated.

On a foreign money impartial foundation, income elevated 6%. Adjusted earnings-per-share of $3.36 in contrast favorably to $3.17 within the prior yr and was $0.07 above estimates.

For the quarter, U.S. grew 7% whereas worldwide was up 1.2% on a reported foundation. Excluding foreign money change, worldwide was greater by 4.8%. Natural development was up 0.7% for the interval.

Click on right here to obtain our most up-to-date Certain Evaluation report on BDX (preview of web page 1 of three proven beneath):