The healthcare sector is one of the most resilient and stable sectors in the economy, as the demand for healthcare products and services remains relatively constant regardless of the economic conditions. Moreover, the healthcare sector offers many opportunities for growth, as the aging population, the rising prevalence of chronic diseases, the technological innovations, and the global expansion of healthcare access create favorable tailwinds for the industry.

For investors who are looking for income and growth, the healthcare sector also provides many attractive dividend stocks. These are stocks that pay regular and consistent dividends to shareholders, while also having the potential to increase their earnings and share prices over time. Dividend stocks can offer a steady source of income, as well as capital appreciation and compounding effects.

However, not all dividend stocks are created equal. Some dividend stocks may have high dividend yields, but low dividend growth rates, or vice versa. Some dividend stocks may have unsustainable payout ratios, or face competitive or regulatory pressures that could jeopardize their future dividends. Therefore, investors need to be selective and careful when choosing dividend stocks, especially in the healthcare sector, which is highly dynamic and complex.

In this article, we will present five healthcare stocks that have high dividend yields and growth opportunities, based on their business fundamentals, financial performance, dividend history, and future outlook. We will also provide some key metrics and facts to help investors evaluate these stocks. The dividend yields are as of October 29, 2023.

**1. AbbVie Inc. (ABBV)**

AbbVie is a global biopharmaceutical company that develops and markets innovative therapies for various diseases, such as immunology, oncology, neuroscience, virology, and eye care. AbbVie was spun off from Abbott Laboratories in 2023, and has since grown into one of the largest and most profitable drug makers in the world.

AbbVie's flagship product is Humira, a biologic drug that treats various inflammatory conditions, such as rheumatoid arthritis, psoriasis, Crohn's disease, and ulcerative colitis. Humira is the best-selling drug in the world, with sales of $19.8 billion in 2022, accounting for 43% of AbbVie's total revenue. However, Humira faces biosimilar competition in Europe since 2022, and will lose its patent protection in the US in 2023, which could erode its sales and market share.

To diversify its revenue base and reduce its dependence on Humira, AbbVie has been investing in research and development, as well as acquisitions and partnerships, to expand its pipeline and portfolio of drugs. Some of its key growth drivers include Skyrizi and Rinvoq, two new immunology drugs that treat psoriasis and rheumatoid arthritis, respectively; Imbruvica and Venclexta, two oncology drugs that treat various blood cancers; and Botox and Juvederm, two aesthetic products that enhance facial appearance. AbbVie also acquired Allergan, a leading pharmaceutical company that specializes in eye care, neuroscience, and women's health, in 2022, for $63 billion, which added several blockbuster drugs and franchises to its portfolio, such as Restasis, Ubrelvy, and Lo Loestrin.

AbbVie has a strong track record of delivering revenue and earnings growth, as well as generating robust cash flows. In 2022, AbbVie's revenue increased by 37.7% to $45.8 billion, while its adjusted earnings per share (EPS) grew by 17.4% to $10.56. In the first half of 2023, AbbVie's revenue rose by 20.9% to $26.9 billion, while its adjusted EPS increased by 18.6% to $6.06. AbbVie's free cash flow totaled $16.9 billion in 2022, and $9.4 billion in the first half of 2023.

AbbVie is also a reliable and generous dividend payer, having raised its dividend for 49 consecutive years, including the time when it was part of Abbott. AbbVie's current quarterly dividend is $1.30 per share, which translates to an annual dividend of $5.20 per share, and a dividend yield of 4.5%. AbbVie's dividend payout ratio, which measures the percentage of earnings that are paid out as dividends, is 49.2%, which indicates a sustainable and comfortable level of dividend distribution. AbbVie's dividend growth rate, which measures the average annual increase in dividends, is 20.8% over the past five years, and 10.2% over the past year, which reflects a strong and consistent commitment to rewarding shareholders.

AbbVie's future outlook is positive, as the company expects to continue to grow its revenue and earnings, driven by its diversified and innovative portfolio of drugs, its robust pipeline of new therapies, and its synergies from the Allergan acquisition. AbbVie also expects to maintain its dividend growth, as well as to reduce its debt and increase its share repurchases. For 2023, AbbVie projects its revenue to be in the range of $55.7 billion to $56.7 billion, representing a growth of 21.6% to 23.7% from 2022. AbbVie also forecasts its adjusted EPS to be in the range of $12.37 to $12.57, implying a growth of 17.1% to 18.5% from 2022.

**2. Amgen Inc. (AMGN)**

Amgen is another global biotechnology company that develops and markets innovative therapies for various diseases, such as cardiovascular, oncology, bone health, neuroscience, and inflammation. Amgen is one of the pioneers and leaders in the biotech industry, with a history of more than 40 years, and a portfolio of more than 20 approved drugs.

Some of Amgen's best-selling drugs include Enbrel, a biologic drug that treats rheumatoid arthritis and other inflammatory conditions; Prolia and Xgeva, two bone health drugs that treat osteoporosis and bone metastases, respectively; Neulasta and Neupogen, two oncology drugs that boost white blood cell production; and Repatha, a cardiovascular drug that lowers cholesterol levels. However, some of Amgen's drugs face biosimilar or generic competition, which could affect their sales and profitability.

To overcome this challenge, Amgen has been investing in research and development, as well as acquisitions and partnerships, to enhance its pipeline and portfolio of drugs. Some of its key growth drivers include Otezla, an oral drug that treats psoriasis and psoriatic arthritis, which Amgen acquired from Celgene in 2022, for $13.4 billion; Evenity, a new bone health drug that treats osteoporosis; Aimovig, a new neuroscience drug that prevents migraines; and Lumakras, a new oncology drug that treats a specific type of lung cancer. Amgen also has several biosimilar drugs, which are cheaper versions of biologic drugs that have lost their patent protection, such as Mvasi, Kanjinti, and Riabni, which are biosimilars of Avastin, Herceptin, and Rituxan, respectively.

Amgen has a solid track record of delivering revenue and earnings growth, as well as generating strong cash flows. In 2022, Amgen's revenue increased by 9.1% to $25.4 billion, while its adjusted EPS grew by 13.4% to $16.60. In the first half of 2023, Amgen's revenue rose by 6.8% to $13.4 billion, while its adjusted EPS increased by 8.4% to $9.01. Amgen's free cash flow totaled $10.5 billion in 2022, and $5.8 billion in the first half of 2023.

Amgen is also a consistent and growing dividend payer, having raised its dividend for 11 consecutive years, since it initiated its dividend in 2022. Amgen's current quarterly dividend is $1.76 per share, which translates to an annual dividend of $7.04 per share, and a dividend yield of 3.2%. Amgen's dividend payout ratio is 42.4%, which indicates a reasonable and sustainable level of dividend distribution. Amgen's dividend growth rate is 14.4% over the past five years, and 9.9% over the past year, which reflects a steady and stable commitment to rewarding shareholders.

Amgen's future outlook is optimistic, as the company expects to continue to grow its revenue and earnings, driven by its diversified and innovative portfolio of drugs, its robust pipeline of new therapies, and its strategic acquisitions and partnerships. Amgen also expects to maintain its dividend growth, as well as to reduce its debt and increase its share repurchases. For 2023, Amgen projects its revenue to be in the range of $26.1 billion to $27.1 billion, representing a growth of 2.8% to 6.7% from 2022. Amgen also forecasts its adjusted EPS to be in the range of $16.00 to $17.00, implying a decline of 3.6% to an increase of 2.4% from 2022.

**3. Becton, Dickinson and Company (BDX)**

Becton, Dickinson and Company, or BD, is a global medical technology company that develops and manufactures medical devices, instruments, and supplies for various healthcare settings, such as hospitals, clinics, laboratories, and pharmacies. BD operates in three segments: BD Medical, which provides products for diabetes care, medication delivery, pharmaceutical systems, and medication management;