What is Considered a Good Stock Dividend? 2 Healthcare Stocks That Fit the Bill.

2026-02-08 12:29:00 ET

Investors will often debate what makes a good dividend stock. For some, it's all about the dividend yield. Others highlight a company's dividend growth track record.

The data suggests the sweet spot is right in the middle. Over the last 50 years, S&P 500 companies that increased their dividends delivered a 10.2% average annual return, while those with no change in their dividend policy (often higher-yielding stocks) returned 6.8% annually, according to data from Ned Davis Research and Hartford Funds. The data also indicated that companies with higher dividend payout ratios (typically those with higher yields) outperformed the market more often than their stingier counterparts.

Here are a couple of healthcare stocks that deliver both yield and dividend growth.

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