AI-Linked Healthcare Stocks Outperform Market with Dividends
Healthcare and biotech companies are at the forefront of practical AI adoption. Unlike many emerging tech plays, they have real-world demand that's unlikely to disappear. Take Merck & Company (MRK), for example. This pharmaceutical giant is using its partnership with Google Cloud to support research, manufacturing, and business operations.
Merck's stock has surged 42% year-to-date, outperforming the S&P 500 by a significant 29 percentage points. The company also pays a forward annual dividend of $3.40, translating to a yield of approximately 2.17%. A consensus among 28 analysts rates MRK a 'Moderate Buy', with its high target price suggesting decent upside over the next year.
Amgen (AMGN) is another biotech leader that's beating the market. Working with NVIDIA's tech, it's predicting protein properties and designing biologics to speed up drug discovery. AMGN stock has risen 34% year-to-date, beating the S&P 500 by around 21 percentage points.
Johnson & Johnson (JNJ) rounds out this trio of AI-linked healthcare companies. With its innovative medicines and medical technology, JNJ is expanding into areas like AI-supported surgery. Its stock has increased 28% since the year started, outperforming the S&P 500 by 15 percentage points.
Each of these companies offers a unique combination of innovation, durability, and income, without relying on emerging tech hype. For investors seeking exposure to both healthcare and AI, Merck & Company, Amgen, and Johnson & Johnson are certainly worth considering.