When the market gets choppy, investors often seek refuge in dividend-paying stocks. These companies typically generate strong free cash flow and share the wealth with their shareholders through consistent payouts. For those hunting yield in the healthcare sector, here's what some of Wall Street's most accurate analysts are saying about three compelling options.
Perrigo Company (PRGO): The High-Yield Contrarian Play
With a dividend yield of 8.32%, Perrigo Company (PRGO) is certainly catching eyes. But that elevated yield comes with some caution flags from the analyst community.
JP Morgan analyst Chris Schott, who maintains a 67% accuracy rate, kept his Neutral rating on December 15, 2025, while trimming the price target from $20 to $18. Meanwhile, Canaccord Genuity analyst Susan Anderson, with a 62% accuracy rate, maintained her Buy rating on November 6, 2025, but slashed the price target dramatically from $40 to $20.
The skepticism makes sense when you look at recent performance. On November 5, Perrigo reported mixed third-quarter financial results and reduced its fiscal year 2025 adjusted EPS guidance to levels below analyst estimates. That kind of guidance cut often signals deeper operational challenges that can make even generous dividend yields less appealing if the payout becomes unsustainable.
Bristol-Myers Squibb (BMY): The Momentum Builder
Bristol-Myers Squibb (BMY) offers a more modest 4.65% dividend yield, but the analyst sentiment here is noticeably more constructive.
The big move came from B of A Securities analyst Tim Anderson, who sports a 65% accuracy rate. On December 15, 2025, Anderson upgraded Bristol-Myers Squibb from Neutral to Buy and lifted the price target from $51 to $61. That's the kind of upgrade that gets investors' attention, especially when it comes from an analyst with a solid track record.
Not everyone's equally bullish, though. Morgan Stanley analyst Terence Flynn, who has the highest accuracy rate of this group at 70%, maintained his Underweight rating on December 12, 2025, while nudging the price target from $36 to $37. So there's still some disagreement about where this pharmaceutical giant is headed.
On the news front, Bristol-Myers Squibb announced on December 19 that it reached an agreement with the U.S. Government aimed at improving affordability and access to critical medicines for Americans. These types of partnerships can help solidify a company's market position, even if they might pressure margins in the short term.
CVS Health (CVS): The Guidance Raiser
CVS Health (CVS) carries the lowest dividend yield of the three at 3.33%, but what it lacks in yield it makes up for in positive momentum from both management and analysts.
JP Morgan analyst Lisa Gill, with a 58% accuracy rate, maintained her Overweight rating on December 17, 2025, and raised the price target from $93 to $101. Similarly, Truist Securities analyst David Macdonald, who has a 67% accuracy rate, maintained his Buy rating on December 10, 2025, and increased the price target from $95 to $98.
The bullishness appears justified by recent company performance. On December 9, CVS raised its fiscal year 2025 adjusted EPS and sales guidance, which is exactly what investors want to see. When a company lifts guidance late in the fiscal year, it typically signals that management has good visibility into finishing the year strong.
The Dividend Strategy in Context
These three stocks illustrate different dividend investment strategies. Perrigo represents the high-yield, high-risk approach where you're betting that the generous payout is sustainable despite operational headwinds. Bristol-Myers Squibb offers a middle-ground yield with mixed analyst sentiment, requiring investors to pick which analysts they trust more. CVS Health provides the lowest yield but arguably the most stable growth trajectory based on recent guidance increases.
The accuracy rates of these analysts range from 58% to 70%, which means they're getting it right more often than not, but they're hardly infallible. When multiple highly-rated analysts disagree on a stock like Bristol-Myers Squibb, it's usually a sign that the investment thesis has legitimate arguments on both sides.
For investors seeking dividend income in healthcare, the key is matching the risk profile to your portfolio needs. Companies with exceptionally high yields often carry elevated risks that may justify that payout level. More modest yields from operationally sound companies might deliver better total returns when you factor in both dividends and price appreciation over time.