3 Healthcare Stocks Paying the Highest Dividends of 2026

With healthcare's status as a recession-resistant industry, healthcare stocks can be a great place for dividend investors to find companies paying out steady, consistent dividends. However, it's not as if you can just buy only high-yield dividend stocks and call it a day.

In this space, there are plenty of potential yield traps and value traps. Such stocks, already beaten down by negative news and sentiment, are at risk of further declines, not to mention dividend cuts and suspensions.

Among U.S.-listed healthcare stocks with market caps of at least $200 million, the three highest-yielding are Perrigo (NYSE: PRGO), Pfizer (NYSE: PFE), and Embecta (NASDAQ: EMBC). Let's take a look at each and decide whether they make great choices for dividend investors.

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As value trap vibes persist, tread carefully with Perrigo

Perrigo makes and sells over-the-counter health and wellness products. While a strong performer during the late 2010s through early 2010s, shares have experienced a steep slump over the past decade.

Shares have dropped by 90% during this time frame. Just over the past year alone, Perrigo has fallen by 41%. Chalk this up to declining sales, weak guidance, and analyst downgrades . This massive price decline is a big reason why Perrigo has become a high-yielder.

Currently, the stock has a forward dividend yield of 8.2%. Perrigo's dividend payout ratio is only 41.6%. The company also has a 23-year track record of dividend growth, and trades for less than 6 times forward earnings. Yet even if its high payout is here to stay, tread carefully. Until positive news emerges, it may be best to assume shares remain a value trap.

Pfizer remains appealing as a high-yield dividend stock

Pfizer experienced a brief growth wave during the pandemic, but as demand for COVID-19 vaccines and treatments declined, so too have the big pharma company's revenue, earnings, and stock price. As a result of this pullback, however, Pfizer has become a high-yield dividend stock.

Currently, shares have a forward dividend yield of 6.7%. However, unlike Perrigo, there are many signs that things are about to turn a corner, suggesting that value-trap fears about Pfizer are overblown. Namely, because while Pfizer's COVID-19-related revenues keep dropping, the company is reporting strong growth among its non-COVID blockbuster drugs.

Pfizer's upcoming launch of a GLP-1 product remains another potential catalyst. Improved results and valuation expansion could be on the horizon. Ahead of a rebound, you may want to buy now, while the dividend remains at above-average levels.

Don't underestimate Embecta's turnaround potential

Embecta makes diabetes-related medical products. The stock has become a high-yielder, largely due to a steady drop in its share price. Weak results and guidance have put significant pressure on shares, which have fallen by around 37% over the past 12 months.

Still, investors may want to buy now, as shares sport a 5.5% forward dividend yield. Besides the steady dividend gains, there may also be rebound potential. As CEO Devdatt Kurdikar noted on last November's post-earnings conference call, Embecta could experience moderate organic growth as it moves into the GLP-1 pen needle business.

Just a small bit of initial success could be enough to shift investor sentiment. If this happens, the stock, currently trading for less than 7 times forward earnings, could experience a market rerating.

Thomas Niel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Pfizer. The Motley Fool has a disclosure policy.