Here Are My Top 2 High-Yield Healthcare Stocks to Buy Now

Companies like Pfizer (NYSE: PFE) and Bristol Myers Squibb (NYSE: BMY) prove that income investors don't have to give up growth potential to collect a big dividend. Both companies pair generous payouts with drug portfolios that are shifting toward the next generation of medicines. That combination makes these two stocks worth a closer look.

Pfizer offers a high yield while rebuilding its growth engine

Pfizer is still dealing with the after-effects of the COVID boom. As demand for COVID products normalized, investors have been questioning where the company's next wave of growth will come from. To tackle this issue, management is rebuilding the company's pipeline. Specifically, Pfizer is investing in areas such as R&D, pursuing acquisitions, and developing newer medicines, while cutting costs.

Image source: Getty Images.

The company is already seeing some encouraging results. For example, Pfizer raised its 2026 revenue guidance following its second-quarter results, citing stronger-than-expected performance of its non-COVID portfolio. The company has also continued to pursue opportunities in oncology, vaccines, and obesity.

And there are signs that the underlying business is improving. In its latest quarter, Pfizer said revenue from its launched and acquired products grew 18%. That matters because the long-term dividend story depends on Pfizer replacing the revenue it's losing from older products with newer medicines.

For income investors, the biggest attraction is still the dividend. Pfizer maintained its quarterly payout at $0.43 per share in 2026 and has committed to maintaining and eventually growing it. Its annual dividend yield is currently about 6%, which is one of the biggest reasons the stock stands out among large pharmaceutical companies. The stock offers investors a high yield while the company works through the post-COVID reset and prepares for upcoming patent expirations.

While Pfizer is rebuilding its business after COVID, another company is building a new portfolio that could become its next growth engine.

Bristol Myers Squibb pairs a high yield with a growing next-gen portfolio

Bristol Myers Squibb, on the other hand, offers another compelling high-yield opportunity. The company has been working to shift its business away from legacy products and toward a newer generation of medicines. And the encouraging part is that Bristol Myers is already seeing its new portfolio contribute meaningfully to results.

Its latest quarter showed continued strength across products, including Reblozyl and Breyanzi, which treat blood-related conditions, helping the company raise its full-year outlook. That transition is becoming more important. Rather than simply relying on old blockbusters, the company is building a broader portfolio across oncology, hematology, and cardiovascular disease.

Meanwhile, Bristol Myers is also replenishing its pipeline through partnerships and acquisitions. It announced a collaboration with Hengrui Pharma covering 13 programs, providing another potential source of future medicines.

There have also been notable pipeline developments. The FDA granted accelerated approval to Zenbexus, the company's first CELMoD therapy, a type of oral cancer medication, giving the company another potential growth product.

At the same time, Bristol Myers continues to return cash to shareholders. The company raised its dividend for the 17th consecutive year in late 2025 and has maintained the $0.63 quarterly payout through 2026. As a result, the stock offers an annual dividend yield of about 4%.

As both companies invest in the next phase of growth, the question is whether they can maintain their high dividend yields.

Why these two high-yield healthcare stocks stand out

Pfizer and Bristol Myers Squibb offer something income investors don't often get from large pharmaceutical companies: high dividend yields backed by established businesses and next-generation portfolios.

Both companies generate strong cash flow from widely used medicines, while investing in newer products that could support future revenue growth. That means the decision for investors comes down to risk tolerance.

Pfizer suits investors willing to accept more uncertainty in exchange for the higher yield and a bigger potential payoff if its post-COVID rebuild succeeds, while Bristol Myers Squibb fits those who want a steadier grower, backed by 17 straight years of dividend increases and a next-gen portfolio that's already gaining traction.

Rick Orford has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bristol Myers Squibb and Pfizer. The Motley Fool has a disclosure policy.