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Top Analysts Weigh In On Three High-Dividend Healthcare Stocks Worth Watching

MarketDash Editorial Team
6 hours ago
When market volatility strikes, dividend-paying healthcare stocks often become investor favorites. Here's what Wall Street's most accurate analysts are saying about three companies offering yields ranging from 3.35% to 8.83%, including recent rating changes and what's driving their views.

When markets get choppy, investors often gravitate toward dividend-paying stocks for good reason. These companies typically generate strong free cash flow and share the wealth with shareholders through regular dividend payouts. In the healthcare sector, several names are catching the attention of Wall Street's most accurate analysts while offering attractive yields.

Let's look at what top-rated analysts are saying about three healthcare stocks delivering solid dividend yields right now.

Perrigo Company: The Highest Yield With Recent Headwinds

Perrigo Company PLC (PRGO) stands out with an impressive 8.83% dividend yield, but recent analyst activity suggests some caution is warranted.

Susan Anderson from Canaccord Genuity maintained her Buy rating but cut the price target from $40 to $20 on November 6, 2025. This analyst carries a 62% accuracy rate. Meanwhile, Chris Scott at JP Morgan took a more cautious stance, downgrading the stock from Overweight to Neutral while slashing the price target from $32 to $20 on the same day. Scott's accuracy rate sits at 65%.

What's driving this bearish sentiment? On November 5, Perrigo reported mixed third-quarter financial results and reduced its FY25 adjusted EPS guidance below analyst estimates. That kind of guidance cut tends to make even bullish analysts reconsider their positions.

The high dividend yield here is certainly eye-catching, but investors should ask themselves whether that yield is sustainable given the company's recent performance challenges. Sometimes an unusually high yield signals that the market has concerns about the business.

Bristol-Myers Squibb: Divided Analyst Opinion

Bristol-Myers Squibb Co (BMY) offers a 4.81% dividend yield and has generated some interesting analyst disagreement recently.

Terence Flynn at Morgan Stanley maintained an Underweight rating and trimmed the price target from $37 to $36 on December 12, 2025. Flynn has a 69% accuracy rate. On the flip side, Seamus Fernandez at Guggenheim upgraded the stock from Neutral to Buy with a price target of $62 on the same day. Notably, Fernandez has an 81% accuracy rate, making him one of the more reliable analysts covering the stock.

The bullish case got some support on December 11 when Bristol Myers Squibb received FDA Priority Review for its Opdivo Plus AVD combination supplemental biologics license application in untreated stage III/IV classical Hodgkin lymphoma. FDA Priority Review designations can accelerate the approval timeline, potentially bringing new revenue streams online faster.

The analyst split here is significant. When you have one analyst with an 81% accuracy rate upgrading to Buy while another maintains an Underweight rating, it suggests genuine uncertainty about the company's direction. Investors need to decide which narrative they find more compelling.

CVS Health: Positive Momentum Building

CVS Health Corp (CVS) rounds out the list with a 3.35% dividend yield, the lowest of the three but still respectable in today's rate environment.

The analyst activity here has been more uniformly positive. David Macdonald at Truist Securities maintained a Buy rating and raised the price target from $95 to $98 on December 10, 2025. Macdonald has a 67% accuracy rate. Kevin Caliendo at UBS also maintained a Buy rating and increased the price target from $96 to $97 on the same day, with a 65% accuracy rate.

What's fueling the optimism? On December 9, CVS raised its FY2025 adjusted EPS and sales guidance. Guidance increases are always music to investors' ears because they signal management confidence that the business is performing better than previously expected.

While the dividend yield is lower here compared to the other two stocks, the combination of positive analyst sentiment and raised guidance suggests a company with improving fundamentals. Sometimes a lower yield attached to a stronger business outlook is the better bet.

The Bottom Line On Dividend Healthcare Plays

These three healthcare stocks offer different risk-reward profiles for dividend-seeking investors. Perrigo's 8.83% yield looks attractive on paper but comes with execution concerns. Bristol-Myers Squibb at 4.81% has analyst disagreement but potential catalysts from FDA approvals. CVS Health's 3.35% yield is paired with improving guidance and positive analyst momentum.

The analyst accuracy rates matter here. When someone with an 81% accuracy rate makes a call, that's worth paying attention to. But remember that even the best analysts get it wrong sometimes, and past accuracy doesn't guarantee future performance.

For investors looking at dividend plays during uncertain times, these stocks represent three different approaches: the high-yield turnaround story, the divided-opinion pharmaceutical giant, and the improving retail healthcare player. Your choice depends on your risk tolerance and which story you find most convincing.

Back to News

Top Analysts Weigh In On Three High-Dividend Healthcare Stocks Worth Watching

MarketDash Editorial Team
6 hours ago
When market volatility strikes, dividend-paying healthcare stocks often become investor favorites. Here's what Wall Street's most accurate analysts are saying about three companies offering yields ranging from 3.35% to 8.83%, including recent rating changes and what's driving their views.

When markets get choppy, investors often gravitate toward dividend-paying stocks for good reason. These companies typically generate strong free cash flow and share the wealth with shareholders through regular dividend payouts. In the healthcare sector, several names are catching the attention of Wall Street's most accurate analysts while offering attractive yields.

Let's look at what top-rated analysts are saying about three healthcare stocks delivering solid dividend yields right now.

Perrigo Company: The Highest Yield With Recent Headwinds

Perrigo Company PLC (PRGO) stands out with an impressive 8.83% dividend yield, but recent analyst activity suggests some caution is warranted.

Susan Anderson from Canaccord Genuity maintained her Buy rating but cut the price target from $40 to $20 on November 6, 2025. This analyst carries a 62% accuracy rate. Meanwhile, Chris Scott at JP Morgan took a more cautious stance, downgrading the stock from Overweight to Neutral while slashing the price target from $32 to $20 on the same day. Scott's accuracy rate sits at 65%.

What's driving this bearish sentiment? On November 5, Perrigo reported mixed third-quarter financial results and reduced its FY25 adjusted EPS guidance below analyst estimates. That kind of guidance cut tends to make even bullish analysts reconsider their positions.

The high dividend yield here is certainly eye-catching, but investors should ask themselves whether that yield is sustainable given the company's recent performance challenges. Sometimes an unusually high yield signals that the market has concerns about the business.

Bristol-Myers Squibb: Divided Analyst Opinion

Bristol-Myers Squibb Co (BMY) offers a 4.81% dividend yield and has generated some interesting analyst disagreement recently.

Terence Flynn at Morgan Stanley maintained an Underweight rating and trimmed the price target from $37 to $36 on December 12, 2025. Flynn has a 69% accuracy rate. On the flip side, Seamus Fernandez at Guggenheim upgraded the stock from Neutral to Buy with a price target of $62 on the same day. Notably, Fernandez has an 81% accuracy rate, making him one of the more reliable analysts covering the stock.

The bullish case got some support on December 11 when Bristol Myers Squibb received FDA Priority Review for its Opdivo Plus AVD combination supplemental biologics license application in untreated stage III/IV classical Hodgkin lymphoma. FDA Priority Review designations can accelerate the approval timeline, potentially bringing new revenue streams online faster.

The analyst split here is significant. When you have one analyst with an 81% accuracy rate upgrading to Buy while another maintains an Underweight rating, it suggests genuine uncertainty about the company's direction. Investors need to decide which narrative they find more compelling.

CVS Health: Positive Momentum Building

CVS Health Corp (CVS) rounds out the list with a 3.35% dividend yield, the lowest of the three but still respectable in today's rate environment.

The analyst activity here has been more uniformly positive. David Macdonald at Truist Securities maintained a Buy rating and raised the price target from $95 to $98 on December 10, 2025. Macdonald has a 67% accuracy rate. Kevin Caliendo at UBS also maintained a Buy rating and increased the price target from $96 to $97 on the same day, with a 65% accuracy rate.

What's fueling the optimism? On December 9, CVS raised its FY2025 adjusted EPS and sales guidance. Guidance increases are always music to investors' ears because they signal management confidence that the business is performing better than previously expected.

While the dividend yield is lower here compared to the other two stocks, the combination of positive analyst sentiment and raised guidance suggests a company with improving fundamentals. Sometimes a lower yield attached to a stronger business outlook is the better bet.

The Bottom Line On Dividend Healthcare Plays

These three healthcare stocks offer different risk-reward profiles for dividend-seeking investors. Perrigo's 8.83% yield looks attractive on paper but comes with execution concerns. Bristol-Myers Squibb at 4.81% has analyst disagreement but potential catalysts from FDA approvals. CVS Health's 3.35% yield is paired with improving guidance and positive analyst momentum.

The analyst accuracy rates matter here. When someone with an 81% accuracy rate makes a call, that's worth paying attention to. But remember that even the best analysts get it wrong sometimes, and past accuracy doesn't guarantee future performance.

For investors looking at dividend plays during uncertain times, these stocks represent three different approaches: the high-yield turnaround story, the divided-opinion pharmaceutical giant, and the improving retail healthcare player. Your choice depends on your risk tolerance and which story you find most convincing.