Two High-Yield Healthcare Stocks to Consider Now

Estimated reading time: 6 minutes · Last updated: 29 September 2026

High-yield healthcare stocks to consider include Pfizer and Bristol Myers Squibb, which offer dividend income alongside active investment in next‑generation medicines. Pfizer maintains a $0.43 quarterly payout in 2026 and yields about 6%, while Bristol Myers Squibb pays $0.63 quarterly and yields about 4%. Both companies are shifting revenue toward newer products: Pfizer reported an 18% rise in revenue from launched and acquired products in its latest quarter, and Bristol Myers has seen strength from Reblozyl and Breyanzi. This summary draws on reporting as first reported by The Motley Fool and focuses on dividend levels, recent commercial traction, and the risks that could affect payout sustainability.

Why Pfizer’s yield looks attractive while it rebuilds growth

Pfizer remains a high-yield option for income-focused investors because the company kept its 2026 quarterly payout at $0.43 per share and yields roughly 6% on an annual basis. That yield reflects the company's position after the COVID product boom faded; management is reallocating capital into R&D, targeted acquisitions, and newer therapeutic areas to replace revenue lost to normalization and impending patent expirations.

Operationally, Pfizer reported that revenue from launched and acquired products rose 18% in its most recent quarter, a sign that non‑COVID commercial lines are gaining traction. The company also raised its 2026 revenue guidance after that quarter, citing stronger-than-expected performance outside of COVID products. Those items reduce the near‑term threat to the dividend but do not eliminate it: maintaining a large payout depends on turning pipeline investment and recent commercial gains into sustained cash flow.

Investors weighing Pfizer should treat the yield as compensation for execution risk. If the company's pipeline and acquisition strategy convert into recurring sales, the higher yield could prove durable; if not, the payout could become harder to support as older products face generic competition.

Bristol Myers Squibb: steadier income backed by next‑gen product lift

Bristol Myers Squibb pairs a lower yield than Pfizer with clearer signs of portfolio transition already contributing to results. The company kept its $0.63 quarterly payout through 2026 and had raised dividends for 17 straight years before that, which signals an established shareholder‑return policy. Recent quarters showed strength from products such as Reblozyl and Breyanzi, and management raised its full‑year outlook on that basis.

Pipeline progress adds to the case for income investors: Zenbexus recently received accelerated approval from the FDA, marking Bristol Myers Squibb's first CELMoD therapy and creating a new commercial opportunity in oncology. Bristol Myers also announced a collaboration with Hengrui Pharma that covers 13 development programs, providing additional potential midterm growth catalysts. Those program counts and approvals are discrete events that can materially affect revenue if they scale commercially.

For investors who prioritise steady dividend growth and lower execution risk, Bristol Myers presents a combination of ongoing payouts and visible pipeline contributions. The trade‑off versus Pfizer is a smaller current yield in exchange for a business mix that has already begun to show newer-product revenue.

Balancing yield and pipeline risk: a practical framework for investors

Choosing between the two names comes down to tolerance for execution risk versus income. Pfizer offers the higher income today—about a 6% annual yield—but that yield depends on the company successfully replacing revenue lost after the COVID surge and handling upcoming patent cliffs. Bristol Myers yields about 4% and shows clearer near‑term replacements in oncology and hematology that have already contributed to results.

A simple checklist helps: confirm whether recent revenue increases are repeatable (Pfizer’s 18% growth in launched and acquired products is a positive data point), track regulatory milestones that unlock commercial launches (Zenbexus’s accelerated approval is one), and monitor dividend coverage metrics such as free cash flow and payout ratio before and after major product rollouts. If Pfizer or Bristol Myers Squibb do not disclose those coverage figures, investors should obtain the companies’ cash‑flow statements and management commentary on reinvestment plans.

Do not treat yield alone as a buy signal. Both companies generate substantial cash from established medicines while funding new programs, but dividend durability ultimately depends on whether new medicines reach expected sales levels and margins. For yield‑seeking portfolios, mixing a higher‑yield, higher‑execution‑risk name with a steadier payer can lower portfolio volatility while maintaining income.

Case for and against dividend durability

The bottom line

Pfizer and Bristol Myers Squibb both trade as high‑yield healthcare options, but they suit different investor priorities. Pfizer offers the larger current yield—around 6%—and shows early signs of recovery in non‑COVID sales, while Bristol Myers offers a steadier profile with visible contributions from new therapies and a track record of annual dividend increases. Neither yield is guaranteed: both companies must convert pipeline progress and collaborations into sustained cash flow to support ongoing payouts. Investors should verify dividend coverage metrics and monitor upcoming commercial and regulatory milestones before committing capital.

What to watch

• Watch for Pfizer’s next quarterly results; no date has been set.
• Watch for commercial updates or launch milestones for Zenbexus; no date has been set.
• Watch for progress reports or filings tied to Bristol Myers Squibb’s collaboration with Hengrui Pharma; no date has been set.

This article is information, not financial advice. Anyone acting on it should do their own checks.