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Graham-Cassidy Fail Shines Spotlight on 3 Top Dividend Stocks
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MedTech has been a precarious space for President Donald Trump since day one. Following multiple futile efforts to repeal Obamacare, the Graham-Cassidy ‘last-ditch’ proposal to undo many components of the Affordable Care Act failed to materialize.
After the latest GOP defeat, a certain question loomed large in the hearts of many Americans: “Is still a chance to witness a Republican healthcare reform by the end of 2017?”
In this regard, let us not forget the dramatic failure of the first Republican healthcare bill, which was proposed earlier this summer; The American Health Care Act (AHCA) failed to garner support in the House thanks to solid opposition from both conservative and moderate lawmakers.
The recent failure of the highly contentious Graham-Cassidy bill was quite a breather for the healthcare community. How can a bill that cuts down on insurance coverage, threatens consumer protection, and undermines patients with pre-existing medical conditions like cancer or Alzheimer’s be a solid healthcare ‘reform’ for a developed country like the United States?
This, though, could just be a temporary relief considering what Rep. Lindsey Graham has promised the nation. But while he wishes to revisit the Graham-Cassidy legislation after reforming the tax regiman, the Congressional Budget Office (CBO) and other leading players in the healthcare space have come forward with straight-cut opposition to the bill. However, this back-and-forth has raised uncertainty in the MedTech space.
Why Did the Graham-Cassidy Bill Fail?
On analyzing the reasons for the Graham-Cassidy defeat, the ‘warning-report’ by the CBO acted as a key catalyst. The report revealed that millions of Americans would lose health coverage due to $1 trillion in cuts to Medicaid through 2026, and the bill would have resulted in loss of health insurance coverage, destabilized insurance markets and decreased access to affordable coverage and care for commoners.
Second, the policy posed a serious threat to primary essentials like maternity care and coverage for prescription drugs. Per a leading organization Planned Parenthood, “Policy on women’s health care should not be written by a small group of male politicians behind closed doors.”
Third, the Graham-Cassidy bill strictly undermined pre-existing condition protections among patients. Leading health organization American Academy of Pediatrics called the policy “dangerous, ill-conceived," while the Blue Cross Blue Shield Association raised questions pertaining to the key consumer protections regimen of the policy.
Fourth, the Graham-Cassidy bill proposed the replacement of Obamacare with a block grant that will be given to states every year to help individuals pay for health care. This grant proposal would lessen medical coverage for the needy and pose major issues for state budgets.
How to Beat the Heat?
Amid this conundrum, investors primarily want to invest in stocks that promise a steady flow of income. Dividend investing might prove to be one of the most dependable long-term investing strategies, as payouts can be easily reinvested for more gains.
Dividend stocks are always a preferred choice since they provide steady income and cushion investors against market swings. They not only offer higher income in the current environment – where rates remain low despite expected hikes – but also provide relief in adverse market conditions.
Zeroing in on dividend stocks with a solid Zacks Rank is a great way to increase the chances of beating volatile market conditions while ensuring a steady stream of cash flow. We have used the Zacks Stock Screener to narrow down three MedTech stocks that offer decent dividend yield.
Check out these three Zacks Rank #1 (Strong Buy) or #2 (Buy) dividend stocks now:
Smith & Nephew Plc (SNN - Free Report) : Smith & Nephew carries a Zacks Rank #2 and represents a return of 20.7% year-to-date. The company designs, develops, and sells medical devices worldwide. The company's dividend currently yields 1.7%. The stock has a long-term expected earnings growth rate of 6.9%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Smith & Nephew’s knee franchises delivered solid results in the last quarter led by strong contributions from the flagship JOURNEY II platform. Furthermore, the company’s Sports Med Joint Repair segment posted solid performance on the back of recent launches like Q-FIX for shoulder and ULTRABUTTON for knee repair.
Owens & Minor Inc. (OMI - Free Report) : This Zacks Rank #1 company provides logistics services across the spectrum of medical products from disposable medical supplies to devices and implants. The company has a dividend yield of 3.5%, and has a long-term expected earnings growth rate of 5%.
The current-year estimate revision trend of the stock has been favorable with five analysts moving north, compared to no movement in the opposite direction in the last two months. As a result, the Zacks Consensus Estimate for the current year inched 0.5% up to $1.92 per share.
Based in Mechanicsville, VA, Owens & Minor is a global healthcare services company focused on providing supply chain services to healthcare providers and manufacturers of healthcare products.
Essilor International SA (ESLOY - Free Report) : This Zacks Rank #1 stock has a long-term expected earnings growth rate of 10% and has gained 9.7% on a year-to-date basis. Essilor International's dividend yield is currently 2.32%. The company sells ophthalmic lenses and ophthalmic optical instruments in North America, Europe, Asia, Oceania, Africa, and Latin America.
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Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
Image: Bigstock
Graham-Cassidy Fail Shines Spotlight on 3 Top Dividend Stocks
MedTech has been a precarious space for President Donald Trump since day one. Following multiple futile efforts to repeal Obamacare, the Graham-Cassidy ‘last-ditch’ proposal to undo many components of the Affordable Care Act failed to materialize.
After the latest GOP defeat, a certain question loomed large in the hearts of many Americans: “Is still a chance to witness a Republican healthcare reform by the end of 2017?”
In this regard, let us not forget the dramatic failure of the first Republican healthcare bill, which was proposed earlier this summer; The American Health Care Act (AHCA) failed to garner support in the House thanks to solid opposition from both conservative and moderate lawmakers.
The recent failure of the highly contentious Graham-Cassidy bill was quite a breather for the healthcare community. How can a bill that cuts down on insurance coverage, threatens consumer protection, and undermines patients with pre-existing medical conditions like cancer or Alzheimer’s be a solid healthcare ‘reform’ for a developed country like the United States?
This, though, could just be a temporary relief considering what Rep. Lindsey Graham has promised the nation. But while he wishes to revisit the Graham-Cassidy legislation after reforming the tax regiman, the Congressional Budget Office (CBO) and other leading players in the healthcare space have come forward with straight-cut opposition to the bill. However, this back-and-forth has raised uncertainty in the MedTech space.
Why Did the Graham-Cassidy Bill Fail?
On analyzing the reasons for the Graham-Cassidy defeat, the ‘warning-report’ by the CBO acted as a key catalyst. The report revealed that millions of Americans would lose health coverage due to $1 trillion in cuts to Medicaid through 2026, and the bill would have resulted in loss of health insurance coverage, destabilized insurance markets and decreased access to affordable coverage and care for commoners.
Second, the policy posed a serious threat to primary essentials like maternity care and coverage for prescription drugs. Per a leading organization Planned Parenthood, “Policy on women’s health care should not be written by a small group of male politicians behind closed doors.”
Third, the Graham-Cassidy bill strictly undermined pre-existing condition protections among patients. Leading health organization American Academy of Pediatrics called the policy “dangerous, ill-conceived," while the Blue Cross Blue Shield Association raised questions pertaining to the key consumer protections regimen of the policy.
Fourth, the Graham-Cassidy bill proposed the replacement of Obamacare with a block grant that will be given to states every year to help individuals pay for health care. This grant proposal would lessen medical coverage for the needy and pose major issues for state budgets.
How to Beat the Heat?
Amid this conundrum, investors primarily want to invest in stocks that promise a steady flow of income. Dividend investing might prove to be one of the most dependable long-term investing strategies, as payouts can be easily reinvested for more gains.
Dividend stocks are always a preferred choice since they provide steady income and cushion investors against market swings. They not only offer higher income in the current environment – where rates remain low despite expected hikes – but also provide relief in adverse market conditions.
Zeroing in on dividend stocks with a solid Zacks Rank is a great way to increase the chances of beating volatile market conditions while ensuring a steady stream of cash flow. We have used the Zacks Stock Screener to narrow down three MedTech stocks that offer decent dividend yield.
Check out these three Zacks Rank #1 (Strong Buy) or #2 (Buy) dividend stocks now:
Smith & Nephew Plc (SNN - Free Report) : Smith & Nephew carries a Zacks Rank #2 and represents a return of 20.7% year-to-date. The company designs, develops, and sells medical devices worldwide. The company's dividend currently yields 1.7%. The stock has a long-term expected earnings growth rate of 6.9%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Smith & Nephew’s knee franchises delivered solid results in the last quarter led by strong contributions from the flagship JOURNEY II platform. Furthermore, the company’s Sports Med Joint Repair segment posted solid performance on the back of recent launches like Q-FIX for shoulder and ULTRABUTTON for knee repair.
Smith & Nephew SNATS, Inc. Price and Consensus
Smith & Nephew SNATS, Inc. Price and Consensus | Smith & Nephew SNATS, Inc. Quote
Owens & Minor Inc. (OMI - Free Report) : This Zacks Rank #1 company provides logistics services across the spectrum of medical products from disposable medical supplies to devices and implants. The company has a dividend yield of 3.5%, and has a long-term expected earnings growth rate of 5%.
The current-year estimate revision trend of the stock has been favorable with five analysts moving north, compared to no movement in the opposite direction in the last two months. As a result, the Zacks Consensus Estimate for the current year inched 0.5% up to $1.92 per share.
Based in Mechanicsville, VA, Owens & Minor is a global healthcare services company focused on providing supply chain services to healthcare providers and manufacturers of healthcare products.
Owens & Minor, Inc. Price and Consensus
Owens & Minor, Inc. Price and Consensus | Owens & Minor, Inc. Quote
Essilor International SA (ESLOY - Free Report) : This Zacks Rank #1 stock has a long-term expected earnings growth rate of 10% and has gained 9.7% on a year-to-date basis. Essilor International's dividend yield is currently 2.32%. The company sells ophthalmic lenses and ophthalmic optical instruments in North America, Europe, Asia, Oceania, Africa, and Latin America.
Essilor International SA Price and Consensus
Essilor International SA Price and Consensus | Essilor International SA Quote
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>