2024-01-26 12:24:04 ET
Summary
- Healthcare had a mediocre performance in 2023, but it remains a suitable addition to a diversified portfolio due to its defensive characteristics.
- AbbVie Inc. and Merck & Co., Inc. are attractive healthcare players that also provide steady dividends and potential for growth.
- AbbVie is navigating the Humira patent cliff and expects to return to earnings growth in 2025, while Merck's Keytruda is driving sales but faces competition with a patent expiration in 2028.
Written by Nick Ackerman.
Healthcare saw a rather mediocre performance in 2023. This does make sense, as none of these names are within the tech sector that soared for the year - more specifically, the Magnificent 7 names. There was broader participation in the equity space near the end of the year, but it was only enough to get healthcare to finish just over the positive mark . After inflation, we'd be looking at about flat returns....
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AbbVie And Merck: Defensive Healthcare Plays Providing Income