Dividend is a form of reward in which a company shares a portion of its profits with its shareholders. Companies pay dividends to their shareholders either quarterly, semi-annually or annually. Investors can enjoy the dual benefits of dividend-paying stocks in the form of passive income and stock appreciation.
Dividend yield is a financial ratio of dividend analysis. It is expressed as a percentage of the dividends paid by a company per share relative to the market price of the share.
Generally, large-cap, mature companies have good dividend yields, but the average dividend yield in ASX healthcare is higher in small-cap companies than in large-cap companies.
This article will discuss the dividend profile of the five largest ASX healthcare companies by market capitalization.
CSL Limited (ASX: CSL)
CSL Limited is an Australia-based multinational biotechnology company. The company manufactures products to treat and prevent serious human medical conditions. It is also specialized in research and development.
In the first half of FY22 (period ending December 31, 2021), company revenue increased 4% while net profit after tax (NPAT) decreased 5% to 1.76 billion dollars. As of now, the company has announced its dividend payment date tentatively as April 6, 2022 and a dividend amount of $1.04.
Sonic Healthcare Limited (ASX:SHL)
Sonic Healthcare is a healthcare provider in Australia. He specializes in pathology, radiology, general medicine, laboratory medicine and corporate medical services. The company is based in Australia and has divisions in the United States, United Kingdom, New Zealand and Europe.
In December 2021, Sonic acquired a US-based anatomical pathology company, ProPath. Likewise, in November 2021, Sonic signed a joint venture with Harrison. ai, an Australian healthcare AI company. Sonic offers an annual dividend yield of nearly 2.62% at 65% postage. Its five-year average dividend yield is 3.3%.
Related Reading: What Driven Sonic Healthcare (ASX:SHL) Earnings at the Start of FY22
Ramsay Health Care Limited (ASX:RHC)
Ramsay Health Care is a healthcare provider operating in Australia, UK, Europe and Asia. It has a global network of clinical practice, teaching and research in 10 countries and more than 460 sites.
This month, Ramsay successfully acquired UK mental health provider Elysium Healthcare. Last month, Ramsay reached an agreement with NHS England to make its services available to the NHSE and its patients, given the increasing demands resulting from the COVID-19 pandemic. The company tentatively announced the dividend payment date as April 4, 2022 and a dividend amount of AU$1.7259.
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Cochlear Limited (ASX:COH)
Cochlear is a medical device manufacturing company. It designs, manufactures and supplies implantable hearing aids that help restore hearing and connect people to a world of sound. The company has provided more than 600,000 implantable devices to people of all ages. Cochlear’s core mission is to help people hear and be heard.
Cochlear has a market capitalization of A$12.68 billion with an average trading volume of 130,582. Its net profit in June 2021 was A$0.33 billion. Its annual dividend yield is 1.34% and its five-year average dividend yield is 1.9%.
Related Reading: Five medical device stocks listed on the ASX for the year 2022
Pro Medicus Limited (ASX: SME)
Pro Medicus provides radiology computer software service globally to hospitals, imaging centers and healthcare groups. The company has more than 30 years of experience delivering world-class patient care by improving and streamlining medical practice management.
During the six months ended December 31, 2021, PME increased its revenue by 40.3% and its net profit by 52.7%. The company has tentatively announced its dividend payment date as March 25, 2022 and a dividend amount of AU$0.1.
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