Two Healthcare Investments Potential for Long-term Financing Success
In the dynamic world of healthcare, two giants stand out – Elevance Health (ELV) and AstraZeneca (AZN). Let's delve into their growth and dividend prospects.
Elevance Health, the third-largest publicly traded health insurer globally with a market capitalization of $117 billion [1], is projected to generate 12.6% annual earnings growth over the next five years [4]. This impressive growth is underpinned by strategic diversification into digital health and Carelon services [2]. Despite margin pressures due to higher medical costs in ACA and Medicaid segments, Elevance Health's revenue grew 14.3% year-over-year in Q2 2025 to $49.4 billion [1][2].
The company's stock currently offers a 1.1% dividend yield, lower than the S&P 500 index's 1.6% yield [1]. However, its dividend payout ratio stands at 18%, suggesting potential for dividend growth ahead of earnings [2]. Analysts forecast mid-teens annual dividend growth from Elevance Health over the medium term [3].
On the other hand, AstraZeneca, with a market capitalization of $196 billion, ranks seventh among the world's largest pharmaceutical stocks [1]. The company boasts a robust pipeline, particularly in oncology and immunology, offering a market-topping 3.6% dividend yield [1]. AstraZeneca's annual earnings growth potential is more than double the industry average at 15.4% [3].
Notable products in AstraZeneca's portfolio include Tagrisso, Lynparza, Farxiga, Soliris, and Ultomiris [3]. The company posted double-digit revenue and earnings growth in the first quarter of 2022 [3]. AstraZeneca has more than 180 projects in various stages of clinical development in its drug pipeline [3].
Despite a higher forward P/E ratio of 17.4 compared to the industry average of 11.5 [3], AstraZeneca's long-term prospects rely on continued successful drug launches and expanding markets. For detailed up-to-date financials and dividend outlook on AZN, current financial disclosures or analyst reports should be consulted.
The global health insurance industry, including Elevance Health, is expected to grow at a rate of 9.7% each year, from $2 trillion in 2020 to $4.2 trillion by 2028 [4]. As both companies navigate their respective sectors, their growth and dividend prospects continue to shape the future of healthcare.
[1] Elevance Health Q2 2025 Earnings Report [2] Yahoo Finance: Elevance Health (ELV) Insider Trading [3] AstraZeneca Q1 2022 Earnings Report [4] Grand View Research: Global Health Insurance Market Growth Forecast, 2020-2028
- In contrast to the booming healthcare sector, one might consider the potential for investing in personal-finance strategies for long-term growth and income, given the projections for the global health insurance industry to grow at an annual rate of 9.7%.
- While analysts forecast mid-teens annual dividend growth for Elevance Health, individuals interested in personal-finance may also want to consider diversifying their investments by looking into the business sector of pharmaceuticals, where AstraZeneca boasts a market-topping 3.6% dividend yield.
- As you manage your business finances, it's essential to keep track of the dividend growth prospects of companies like Elevance Health and AstraZeneca, as their growth initiatives in digital health, cancer treatments, and other areas can significantly impact their future dividends and, consequently, your personal-finance portfolio.
