Historically, some sectors are just perennial stomping grounds for dividend seekers. Industries such as utilities and consumer staples are often prized by dividend investors for their strong, stable cash flows and steady revenues. As a result, these sectors are able to hand back more cash to investors as dividends and buybacks. Another one of these sectors happens to be healthcare.
Or at least it used to be.
The pandemic shed some light on some unhealthy corners of the sector. And more recently, a major pharmaceutical name slashed its dividend in a restricting effort. With some spin-offs not going as planned, legislation on the horizon and several major dividend cuts now in the books, investors have to wonder what the prognosis is for healthcare stocks.
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