Five dividend stocks in Healthcare and Medical Sector

Sirtex Medical Ltd

SRX Dividend Details
 
Delivered strong dose sales growth: Sirtex Medical Ltd (ASX: SRX) global dose sales of SIR-Spheres microspheres rose by 15.7% yoy to 5,728 units in the first half of 2016, while the Americas dose sales surged by 18.8% to 4,028 units. As a result, Sirtex was able to improve its revenue by 40% yoy to $112.6 million and accordingly its net profit after tax rose by 46.9% yoy to $25.9 million during the period. On the other hand, the shares of SRX plunged over 26.39% during this year to date (as of March 08, 2016) as its first half of 2016 growth was not as strong as its first half of 2015 growth (which rose by 26% yoy in 1H15) coupled with the recovering Australian dollar against US dollar.
 

First half of 2016 performance (Source: Company Reports)
 
But, SRX intends to continue to enhance its SIR-Spheres® Y-90 resin microspheres availability as well as expanding its certified treatment sites, high quality clinical data, trained clinicians as well as accessibility for private or government. American accounts over 70.3% of the group’s global mix by volume as compared to the 68.5% in the first half of 2015 as the number of certified hospitals (treatment sites) surged by 17.7% yoy to 533 sites. The company’s SORAMIC study also completed patient recruitment. We recommend investors to “HOLD” their position in the stock at the current price of $31.27
 
 
SRX Daily Chart (Source: Thomson Reuters)
 

Healthscope Ltd

HSO Dividend Details
 
Maintained growth via Hospital and New Zealand Pathology divisions: Healthscope Ltd (ASX: HSO) maintained its growth for the first half of 2016 wherein its group revenues rose by 5.5% yoy to $1.15 billion while its operating EBITDA increased by 8.0% yoy to $206.4 million. Hospital operating EBITDA surged 10% yoy to $182.7 million wherein the margin expanded by 90 basis points while New Zealand Pathology operating EBITDA grew 17.4% to $23.2 million during the period.
 

Hospitals division performance (Source: Company Reports)
 
HSO is continuing to expand its portfolio which even comprises enhancing Hunter Valley and LaTrobe private hospitals network. Healthscope renewed its long-term contracts with health funds and also finished the Wellington pathology contract integration in New Zealand. HSO stock surged over 13.84% in the last four weeks (as of March 08, 2016) and we believe this positive momentum would continue in the coming months. Based on the foregoing, we give a “BUY” recommendation at the current price of $2.50
 
 
HSO Daily Chart (Source: Thomson Reuters)
 

Ramsay Health Care Ltd

RHC Dividend Details
 
Upgraded guidance: Ramsay Health Care Ltd (ASX: RHC) has upgraded its fiscal year of 2016 guidance after delivering a strong first half of 2016 results. RHC now forecasts a core NPAT and core EPS growth of 15% to 17% in FY16 against its earlier issued guidance of 12% to 14% rise.
 

First half of 2016 performance (Source: Company Reports)
 
The rate of increase in ageing population coupled with growing rate of chronic diseases has been driving the Ramsay Health Care performance and the group is well positioned to benefit from these factors even in the future. For first half of 2016, RHC’s net profit after tax surged 16.2% yoy to $237.4 million while revenues surged by 24.9% yoy to $4.2 billion. Ramsay’s France division generated an outstanding revenue growth of 57.2% yoy to €1.0 billion. RHC stock rallied over 11.93% (as of March 08, 2016) in the last four weeks and we give a “HOLD” to the stock at the current price of $66.26
 
 
RHC Daily Chart (Source: Thomson Reuters)
 

Sonic Healthcare Ltd

SHL Dividend Details
 
Strong performance from International operations: Sonic Healthcare Ltd.’s (ASX: SHL) international operations delivered better performance than its core Australian operations. SHL’s US business delivered double-digit earnings rise driven by its contribution from restructuring of the CBLPath business while the revenue and earnings for UK joint venture, Health Services Laboratories, generated better than estimated results.
 

First half of 2016 performance (Source: Company Reports)
 
Even Germany, Switzerland, Belgium markets reported strong performance in the first half of 2016. On the other hand, SHL stock fell over 10.80% (as of March 08, 2016) in the last three months due to investors’ concerns over its ongoing core business performance impact due to government policies coupled with current currency volatile conditions. Therefore, we give an “Expensive” recommendation to SHL at the current price.
 
 
SHL Daily Chart (Source: Thomson Reuters)
 

Monash IVF Group Ltd

MVF Dividend Details
 
Delivered strong IVF patient treatment growth driven by above average long term Industry growth rates: Monash IVF Group Ltd (ASX: MVF) revenues rose by 31.6% yoy to $79.3 million in the first half of 2016 driven by the above average long term target industry growth rate during the period which rose by  7.8%. The group’s ultrasound revenues surged more than 200% against first half of 2015 boosted by the Sydney ultrasound for Women acquisition during June 2015.
 

Enhancing performance in the last few years (Source: Company Reports)
 
Consequently, MVF also reported a fully franked interim dividend rise of 23.1% yoy to 4.0 cents per share in the first half of 2016. We believe the favorable industry drivers in Australia would continue to contribute to the group’s performance, which delivered an Australian total IVF Patient Treatments increase by 17.5% on a yoy basis during first half of 2016. MVF rallied over 35.94% (as of March 08, 2016) in the last six months and we place a “HOLD” on this dividend yield stock at the current price of  $1.765
 
 
MVF Daily Chart (Source: Thomson Reuters)

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