Healthcare stocks are perceived to be resilient. Their services are needed even during economic recessions. As a result, shares in the healthcare sector usually trade at a premium price-to-earnings (PE) ratio as compared to the broader stock market in general.
Even though the shares may look expensive based on PE, some of the healthcare service providers listed in Singapore have decent dividend yields. That could entice income investors.
With that, let’s look at five healthcare shares with the highest dividend yields, as of 7 May 2019.
1) ISEC Healthcare Ltd (SGX: 40T) takes the top spot with a dividend yield of 5.3% at its share price of S$0.295. The 5.3% dividend yield excludes a special dividend of 0.98 Singapore cents per share declared in the fourth quarter. Including that, the dividend yield rises to 8.6%. To find out how the provider of eye care services performed financially in 2018, you can head here.
2) Slotting into second place is Singapore O&G Ltd (SGX: 1D8). The company has a team of specialist medical practitioners providing services such as obstetrics and gynaecology. At its share price of S$0.375, it sports a dividend yield of 4.5%. To learn about Singapore O&G’s growth track record from 2013 to 2018, you can jump in here.
3) Provider of medical oncology and palliative care services in Singapore, TalkMed Group Ltd (SGX: 5G3), is third on the list with a dividend yield of 3.7%. For TalkMed’s first quarter of 2019, which ended on 31 March, revenue surged 40.7% year-on-year to S$17.0 million while net profit climbed 29.7% to S$7.0 million. The higher revenue was mostly due to an increase in the number of patient visits during the period. TalkMed shares closed at S$0.50 on 7 May.
4) Coming in fourth with a dividend yield of 3.4% is HC Surgical Specialists Ltd (SGX: 1B1). For its third quarter ended 28 February 2019, the provider of endoscopic procedures, among others, saw its revenue rise 8% to S$4.2 million and its net profit surge 400% to S$4.5 million. The massive growth in the bottom-line was mainly due to gains on disposal of investment in an associate before its listing (that associate is newly-listed Medinex Ltd (SGX: OTX)). Shares in HC Surgical ended Tuesday at S$0.58 apiece.
5) Medinex itself takes the final spot with a dividend yield of 2.9% at its share price of S$0.285. The company is a provider of professional support services to medical clinics. To know more about the company and its historical financial growth, you can head here.
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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. The Motley Fool Singapore has recommended shares of Singapore O&G Ltd. Motley Fool Singapore contributor Sudhan P doesn’t own shares in any companies mentioned.