4 Healthcare Dividend Stocks for Retirees. One Yields Over 4%

Retirees who want income from healthcare stocks care about two things more than a big starting yield: dividends that keep rising and checks that keep clearing during a recession. These four blue chips all increased their dividends during 2026, and all four trade with low volatility. Bristol-Myers Squibb (NYSE:BMY) has a beta of 0.186, and Johnson & Johnson (NYSE:JNJ) has one of 0.2. Starting yields range from 4.03% at Bristol to 1.87% at J&J, and that gap is the trade-off income investors need to understand before choosing between them.

Stock Price Annual Dividend Forward Yield Payout vs. Adjusted EPS Outlook Bristol-Myers Squibb $62.47 $2.52 4.03% 39% Medtronic $103.05 $2.88 2.79% 48% AbbVie $294.17 $7.28 2.47% 52% Johnson & Johnson $285.98 $5.36 1.87% N/A (GAAP: 81%) Bristol-Myers Squibb: Top Yield at a Single-Digit Forward P/E

Yield: At $62.47, Bristol’s $2.52 annualized dividend works out to a forward yield of 4.03%. That is the highest in this group.

Dividend safety: The dividend uses about 39% of the midpoint of management’s non-GAAP EPS guidance of $6.35 to $6.55, and 56% of trailing GAAP EPS of $4.51. The full-year dividend bill comes to roughly $5.15 billion. That compares with $4.2 billion of operating cash flow in the third quarter alone, although that figure fell 33.45% from a year earlier. Bristol’s total debt of about $42.9 billion is the main weak spot in its financial profile. The payout record is steady: the quarterly dividend rose from $0.38 in 2016 to $0.63 in 2026, and the payment history goes back to 1999. The raises have been small, though. The latest one went from $0.62 to $0.63.

Bull case: Third-quarter revenue rose 6.93% to $13.07 billion, and non-GAAP EPS of $1.35 beat the $1.23 estimate. The Growth Portfolio climbed 12% to $7.66 billion, Eliquis grew 25% to $4.69 billion, and eight medicines are now running at more than $1 billion a year. Management raised revenue guidance to $49.75 to $50.25 billion. The stock trades at about 9x forward earnings, so investors are paying very little for that pipeline.

Risk: Generic competition is eroding older drugs. Revlimid sales fell 47%, and Pomalyst sales fell 81%. The Legacy Portfolio is expected to shrink 3% to 5%, and management lowered non-GAAP EPS guidance from $6.75 to $7.00 because of in-process R&D charges. Analysts are cautious: the ratings stand at 17 holds, 6 buys and 4 strong buys.

Medtronic: 49 Straight Years of Raises Backed by Rising Free Cash Flow

Yield: Medtronic (NYSE:MDT) pays a $0.72 quarterly dividend, or $2.88 a year. With shares at $103.05, the forward yield is 2.79%.

Dividend safety: Medtronic’s coverage looks the clearest of the four. The company has declared its 49th consecutive year of dividend increases, and its dividend records show a higher quarterly payout every year back to 2001. The annual dividend costs roughly $3.68 billion, well below fiscal 2026 free cash flow of $5.43 billion. In the first quarter of fiscal 2027, free cash flow rose 120.89% to $1.29 billion, ahead of the $921 million paid in dividends. The payout equals about 48% of the midpoint of non-GAAP EPS guidance, compared with 71% of trailing GAAP EPS.

Bull case: Cardiac ablation is driving growth. Cardiac Ablation Solutions grew 88%, Electrophysiology Therapies grew 29.5%, and total first-quarter revenue rose 13.73% to $9.76 billion. Management raised fiscal 2027 organic growth guidance to 7.25% to 7.75% and non-GAAP EPS guidance to $5.94 to $6.00. The stock trades at about 17x forward earnings. Analysts lean positive, with 17 buys, 3 strong buys, and a $105 target.

Risk: The first-quarter growth was partly a calendar effect. An extra 53rd fiscal week added about $570 million, so year-over-year comparisons will get harder. Margins are also under pressure: tariffs cut 80 bps from fourth-quarter fiscal 2026 operating margin. The planned Diabetes separation will also change the business mix.

AbbVie: Dividend Aristocrat With a Fresh Raise

Yield: AbbVie (NYSE:ABBV) raised its quarterly dividend from $1.73 to $1.82, which brings the forward annual rate to $7.28. At $294.17, the forward yield is 2.47%. A 32.59% gain this year has pushed the yield down. The $1.73 payment is due November 16, and the higher rate starts with the February 16, 2027 payment.

Dividend safety: AbbVie belongs to the S&P Dividend Aristocrats Index, and its quarterly payout has grown from $0.40 in 2013 to $1.82. The dividend equals about 52% of the midpoint of adjusted EPS guidance of $13.95 to $13.99. On a GAAP basis, the payout runs 125% because acquired IPR&D charges have cut $0.69 per share from earnings so far this year. The free cash flow yield of 3.42% is higher than the dividend yield, and interest coverage stands at 6.94x. Book value is negative, at -$2.593 per share.

Bull case: AbbVie has replaced Humira’s sales. Skyrizi grew 22.7% to $5.78 billion, Rinvoq grew 23.9% to $2.71 billion, and neuroscience grew 19.4% to $3.39 billion. Third-quarter revenue rose 10.32% to $17.40 billion with an adjusted operating margin of 48.7%. The completed Apogee Therapeutics deal adds to the immunology pipeline.

Risk: Older products are still shrinking. Humira fell 31.2% to $683 million, and Imbruvica fell 26.1%. Most revenue comes from the U.S., so drug pricing policy in Washington could hit AbbVie harder than most.

Johnson & Johnson: 64-Year Dividend King With Upcoming Ex-Dividend Date

Yield: J&J’s $5.36 forward dividend yields 1.87% at $285.98, the lowest yield of the four. The stock has gained 40.41% this year, and that run has pushed the yield down. The next $1.34 payment goes ex-dividend November 24 and is paid December 8.

Dividend safety: No company on this list has a longer record. The April raise from $1.30 to $1.34 was J&J’s 64th consecutive year of dividend increases. The payout takes 81% of trailing GAAP EPS of $6.59, which is high. On an adjusted basis, coverage is stronger: second-quarter adjusted EPS of $2.90 covered the quarterly dividend about twice over. J&J also has an AAA credit rating and generates $34.5 billion in EBITDA. One weak spot: first-quarter free cash flow dropped 55.4% to $1.5 billion.

Bull case: Oncology is driving growth, up 17.3% to $7.41 billion in the second quarter. DARZALEX rose 18.9% to $4.21 billion, and TREMFYA rose 72.5% to $2.05 billion. J&J raised its full-year outlook again in October and remains on track to spin off its orthopedics unit in mid-2027, according to CNBC.

Risk: At 24x forward earnings, the stock already sits above the $279.41 analyst target. Biosimilars cut STELARA sales by 55.2%, and MedTech sales missed Wall Street estimates for a second straight quarter as international demand moderated, CNBC reported.

Income Mix: Bristol’s Yield Meets Steady Dividend Growers

Bristol-Myers Squibb pays the most income today and costs the least relative to earnings. Medtronic has the strongest free cash flow coverage. AbbVie and Johnson & Johnson yield less, but they have long records of raising their dividends. Together, the four give retirees a mix of current yield and rising dividends, each paid out of adjusted earnings with room to spare.