3 Healthcare Stocks Paying the Highest Dividends in the Sector Right Now

The healthcare sector may have defensive and recession-resistant qualities, but it admittedly doesn't have many high-yielding stocks. Among U.S.-listed healthcare stocks with market caps of more than $300 million, just a handful have a forward dividend yield of more than 5%.

However, if you extend the definition of "healthcare stocks" to some adjacent sectors, such as healthcare-focused real estate investment trusts (REITs), more options emerge. While dividend investors have quite a few choices, there may be some caveats with the following healthcare stocks: Perrigo (NYSE: PRGO), Healthpeak Properties (NYSE: DOC), and Medical Properties Trust (NYSE: MPT).

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Perrigo's high yield comes with high uncertainty

Headquartered in Ireland, but operating worldwide, Perrigo is in the over-the-counter health and wellness products space. The company makes and sells branded products as well as private-label products for third-party retailers. On paper, Perrigo may seem like a golden opportunity among high-yield dividend stocks, mostly due to its high 9.6% forward yield, plus its 23-year track record of consecutive annual dividend increases.

Annual dividend growth has also averaged over 5% for the past five years. However, strip away these appealing features, and you can see why Perrigo is such a bargain.

In recent years, Perrigo has experienced a growth slowdown. Factors such as high inflation and rising interest expenses have also put pressure on profitability. The stock has dropped over 87.5% over the past decade while the dividend has kept growing, turning Perrigo into an accidental high-yielder -- and a stock generally regarded as a value trap.

But there may be merit in this undervalued stock, which trades for only 5.5 times forward earnings. Shares have inched higher recently on takeover rumors. Even if a takeover is not in the cards, any news of a turnaround could be well received by the market, especially by those hopeful that Perrigo will continue its long-standing dividend growth streak.

Healthpeak Properties' restructuring could be what the doctor ordered

One of the largest healthcare real estate investment trusts (REITs), Healthpeak Properties owns over 700 healthcare-related properties throughout the U.S. Its portfolio primarily focuses on outpatient healthcare facilities, but the REIT also owns other property types, including medical labs and senior housing.

At current prices, Healthpeak has a forward dividend yield of 7.1%, making it one of the high-dividend REITs. It is also a monthly dividend stock. While Healthpeak has a spotty dividend-growth track record, an ongoing catalyst may be of interest to investors focused on capital growth.

Earlier this year, the REIT formed a new entity, Janus Living, for its senior housing assets. Janus went public in March in a nearly $1 billion IPO. Healthpeak continues to hold a majority stake in Janus.

Having Janus be a publicly traded subsidiary could help underscore the REIT's underlying value relative to its share price. Due to the REIT's past ownership of various types of healthcare real estate, it's possible the market previously applied a "conglomerate discount" to its shares relative to more pure-play healthcare REITs.

While it's unclear whether the restructuring will lead to more consistent dividend growth, considering the upside potential, this restructuring may just well be what the doctor ordered.

Despite stabilizing results, Medical Properties Trust still gives yield trap vibes

Medical Properties Trust is yet another high-yielder with a lot of fleas. Currently, this hospital REIT has a forward dividend yield of around 6.8%. However, during 2023 and 2024, it reduced its quarterly cash dividend twice -- first from $0.29 to $0.15 per share, and then from $0.15 to just $0.08 per share.

The key reason for this nearly 75% dividend cut was issues related to the REIT's largest tenants, namely the 2024 bankruptcy of Steward Health Care. Shares have stabilized since then. Medical Properties Trust has even recently raised its quarterly dividend to $0.09 per share.

However, tenant-related troubles persist. For instance, key tenants, including those who took over leases from Steward, are facing financial challenges. The REIT also has looming debt maturities, including over $2 billion in outstanding debt that comes due in 2027.

Nevertheless, it's not as if this REIT is destined to further flounder. As noted in Medical Properties Trust's latest quarterly results, normalized funds from operations, a metric commonly used to analyze REIT cash flow, came out to $0.18 per share last quarter . While not guaranteed, this suggests that, for now, this healthcare REIT can sustain its current dividend.

Thomas Niel has no position in any of the stocks mentioned. The Motley Fool recommends Healthpeak Properties. The Motley Fool has a disclosure policy.