Three health care stocks to weather market weakness

In addition to providing steady growth, these companies also offer attractive income opportunities through healthy dividends.

Vikram Barhat 24 November, 2015 | 6:00PM

Health care stocks may not replicate the blockbuster returns they posted last year, but as a sector these companies remain among the fastest growing despite participating in the overall market correction.

No matter what happens in the global economy, as part of a non-cyclical sector some health care companies tend to perform well as increased access to health care and medical needs of the aging baby-boomer population continue to fuel the underlying demand for their products.

The S&P 500 Health Care (Sector) Index, which measures the aggregate performance of the 55 U.S. health care stocks included in the S&P 500 Index, gained more than 25% in 2014. For the year to date as of Nov. 17, the gains in the U.S. are more modest, at 4.5% for the sector index, though this is considerably higher than the 1.45% growth for the S&P 500 over the same period.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
GlaxoSmithKline PLC ADR41.92 USD-2.69
Pfizer Inc34.67 USD-2.94
Teva Pharmaceutical Industries Ltd ADR12.70 USD-3.71

About Author

Vikram Barhat

Vikram Barhat  Vikram Barhat is a freelance writer.