Which are the Highest Dividend Paying Stocks in the BSE Healthcare Index?

Healthcare never faces a lack of demand, whether it's routines check-ups or critical treatments.

With lifestyle diseases on the rise and healthcare costs climbing, the need for accessible medical services is growing. Government initiatives like e-health and the increasing adoption of health insurance, are further strengthening the sector's long-term potential.

Even though healthcare stocks have seen some correction lately, the BSE Healthcare Index is still up 23% in the past year.

For investors looking to ride this wave while ensuring steady returns, dividend-paying healthcare stocks are a no-brainer. These stocks not only offer exposure to a booming sector but also provide a cushion with consistent payouts.

In a volatile market, these stocks stand out as a winning mix of stability, growth, and passive income.

For investors on the lookout for such stocks, in this article, we will look at top dividend-paying stocks within the S&P BSE Healthcare Index ranked by dividend yield.

#1 Sanofi India

First on our list is Sanofi India.

Trading at Rs 5,490 at the time of writing, on 31 January 2025, Sanofi India leads this list with a dividend yield of 3%.

This makes it a prime choice for investors focused on stable dividend returns. Since 2001, the company has distributed 50 dividends, showcasing its long-standing commitment to providing value to its shareholders.

Sanofi India's Dividend History (2019-23)

	Dec-19	Dec-20	Dec-21	Dec-22	Dec-23
Dividend per share (Adj.) (Rs)	349.0	365.0	490.0	570.0	167.0
Dividend payout ratio (%)	29.6	143.5	83.1	237.4	131.2
Dividend Yield (%)	5.6	4.9	5.9	8.5	-

Source: Equitymaster

In the past 12 months, Sanofi India has declared an equity dividend of Rs 167 per share.

Sanofi India is a prominent player in the Indian pharmaceutical market, recognised as one of the leading multinational companies.

The company provides a comprehensive range of medicines targeting therapeutic areas such as diabetes, cardiology, thrombosis, central nervous system disorders, and antihistamines.

Sanofi India boasts a portfolio of 32 brands across seven therapeutic areas, with five of its brands ranking among the top 300 in the Indian pharma market. Its products are available in 28 countries, distributed through 3,000 distributors and 100,000 pharmacies.

The company aims to capitalise on its strong portfolio and pipeline, focusing on maximising the market potential of its products.

For more details, see the Sanofi India company fact sheet and quarterly results.

#2 Novartis

Next on the list is Novartis India.

Novartis, trading at Rs 855 on 31 January 2025, stands out as a high-yield dividend stock with a 2.9% dividend yield.

Since 2001, Novartis has consistently rewarded its shareholders, declaring 25 dividends.

Novartis Dividend History (2020-2024)

	Dec-19	Dec-20	Dec-21	Dec-22	Dec-23
Dividend per share (Adj.) * (Rs)	10.0	10.0	10.0	47.5	25.0
Dividend payout ratio (%)	244.9	118.1	(-663.7)	113.5	72.5
Dividend Yield (%)	2.0	1.8	1.7	8.4	2.4

*Adjusted for bonus issues and stock splits
Source: Equitymaster

Novartis paid a dividend of 500% for the year ended March 2024. Over the last 5 years, Novartis has averaged a dividend of 410%. The dividend per share has averaged Rs 20.

Novartis has been in India since 1947 and has two legal entities: Novartis India Limited (NIL) and Novartis Healthcare Private Limited. The company is primarily engaged in the pharmaceutical business in the areas of pain management, organ transplantation, neuroscience, etc.

Swiss pharma major Novartis is set to divest a majority stake in its arm in India after the company CEO Vas Narasimhan confirmed the plans of the parent group Novartis AG.

According to some reports, to acquire these steaks Indian drug makers like Alkem Laboratories, Zydus, and Dr Reddy Laboratories have shown their interest. Alkem is ahead of the rest and has already made a bid of around Rs 20 billion (bn).

For more details, see the Novartis company fact sheet and quarterly results.

#3 Thyrocare Technologies

First on the list is Thyrocare Technologies.

Trading at Rs 778 on 31 January 2025 intraday, Thyrocare Technologies stands with a dividend yield of 2.3%.

Thyrocare Technologies' Dividend History (2020-24)

	Dec-19	Dec-20	Dec-21	Dec-22	Dec-23
Dividend per share (Adj.) (Rs)	4.9	24.9	14.9	18.0	18.0
Dividend payout ratio (%)	29.9	116.8	45.1	87.1	86.4
Dividend Yield (%)	1.0	2.8	1.9	-	-

Source: Equitymaster

In the past 12 months, Thyrocare Technologies has declared an equity dividend amounting to Rs 18 per share. The company has consistently rewarded shareholders, declaring 12 dividends since 2016.

The company is an Indian multinational chain of diagnostic and preventive care laboratories.

The company is one of the leading pan-India diagnostic chains that conduct an array of medical diagnostic tests and profiles of tests.

Going forward, Thyrocare Technologies is confident of achieving mid-teen topline growth for FY25, despite the typically challenging third quarter for the diagnostics industry.

For more details, see the Thyrocare Technologies company fact sheet and quarterly results.

#4 Alivus Life Sciences

Next on the list is Alivus Life Sciences.

With Alivus Life Sciences formerly known as Glenmark Life Sciences' share price at Rs 1,189 intraday on 31 January 2025, the company has a dividend yield of 1.9%.

The company has declared 4 dividends since 2021.

Alivus Life Sciences Dividend History (2020-2024)

	Dec-19	Dec-20	Dec-21	Dec-22	Dec-23
Dividend per share (Adj.) * (Rs)	0.0	0.0	21.0	21.0	22.5
Dividend payout ratio (%)	0.0	0.0	61.5	55.1	58.5
Dividend Yield (%)	0.0	0.0	4.6	5.4	2.9

*Adjusted for bonus issues and stock splits
Source: Equitymaster

The company paid a dividend of 1,125% for the year ended March 2024. The dividend payout per share was Rs 22.5.

It's a leading player in the pharmaceutical industry, primarily focused on the development and manufacture of active pharmaceutical ingredients (APIs).

The company specialises in providing a wide range of high-quality APIs across various therapeutic areas, including oncology, cardiovascular, and central nervous system (CNS) disorders.

Alivus Life Sciences has a strong presence in the global market too, catering to both domestic and international clients.

Going forward, the company is set to increase its investments in research and development as part of its strategic transition under the new corporate identity.

For more details, see the Glenmark Life Sciences company fact sheet and quarterly results.

#5 GlaxoSmithKline Pharma

Last on the list is GlaxoSmithKline (GSK) Pharma.

Trading at Rs 1,992 on 31 January intraday, the company has a dividend yield of 1.6%.

GSK Pharma has paid up to 27 dividends since September 2001.

GSK Pharma Dividend History (2020-2024)

	Dec-19	Dec-20	Dec-21	Dec-22	Dec-23
Dividend per share (Adj.) * (Rs)	40.0	30.0	90.0	32.0	32.0
Dividend payout ratio (%)	727.0	176.9	400.4	89.2	91.9
Dividend Yield (%)	3.2	2.1	5.4	2.4	1.6

*Adjusted for bonus issues and stock splits
Source: Equitymaster

GSK Pharma paid a dividend of 320% for the year ended March 2024. The dividend payout per share was Rs 32.

GSK is a leading global healthcare companies, focusing on the development, manufacture, and marketing of a wide range of pharmaceutical products, vaccines, and consumer healthcare goods.

With a strong presence in over 100 countries, GSK operates in several key therapeutic areas including respiratory diseases, immunology, oncology, and infectious diseases.

Going forward, the company plans to focus on innovation, preventive healthcare, and specialty treatments.

For more details, see the GSK PHARMA company fact sheet and quarterly results.

Conclusion

Investing in dividend-paying healthcare stocks can be a lucrative option. According to a HealthcareAsia report, India's healthcare market is set to grow at a CAGR of 9.3% until 2028, driven by policy continuity, government initiatives like Ayushman Bharat, and infrastructure development.

While public health expenditure is expected to outpace private sector growth, rising incomes, urbanization, and expanding health insurance will further fuel private healthcare spending.

This steady growth, coupled with consistent dividend payouts, makes healthcare stocks an attractive choice for investors seeking stability and long-term returns.

The healthcare sector has long been considered a defensive investment, offering resilience even during economic downturns.

However, fluctuating budget allocations and regulatory changes can impact the sector.

If you want to dig deeper, use Equitymaster's stock screener to check high dividend yield stocks and the best dividend stocks to buy.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...