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The U.S. healthcare sector is attractive for long-term investors, because the industry is set to benefit from a major growth tailwind—the aging population.

The U.S. is an aging country with a very large 65+ population. This means demand for healthcare is only set to grow going forward, likely at a rate above GDP growth.

Investors can capitalize on this trend by considering healthcare dividend growth stocks.

These 3 healthcare stocks have solid dividend yields and should raise their dividends each year, which could lead to outsized returns in the years ahead.

Thermo Fisher Scientific (TMO)

Thermo Fisher Scientific Inc. stands as the global forefront in addressing intricate analytical challenges, empowering its clientele to expedite advancements in life sciences research, enhance patient diagnostics, and elevate efficiency across international laboratories.

The company’s operational segments are Life Sciences Solutions (21%), Analytical Instruments (16%), Specialty Diagnostics (10%), and Laboratory Products and Biopharma (53%).

Thermo Fisher generates around $43 billion in annual sales and is based in Waltham, Massachusetts. On February 19th, 2025, Thermo Fisher raised its dividend by 10% to a quarterly rate of $0.43.

On April 23rd, 2025, Thermo Fisher posted its Q1 results for the period ending March 31st, 2025. Revenues came in at $10.36 billion, up 1% organically compared to last year, with only a slight contribution from M&A. Growth was achieved despite two fewer selling days and headwinds from the runoff of pandemic-related revenue.

The adjusted operating income margin held firm at 21.9%, down just slightly from last year’s 22.0%, reflecting continued strategic investments and FX headwinds. Thanks to strong execution, adjusted EPS for the quarter rose by 1% to $5.15.

Elevance Health (ELV)

Elevance Health Inc., formerly known as Anthem, Inc., is a healthcare benefits company has more than 47 million members through its plans.

The company provides managed plans to a wide variety of markets, including individual, commercial, Medicare and Medicaid. Its two largest customer groups are government (~60% of annual sales) and commercial business (~30% of sales). Elevance has annual sales of $175 billion.

On January 22nd, 2025, Elevance raised its quarterly dividend 4.9% to $1.71, extending the company’s dividend growth streak to 15 consecutive years.

On April 22nd, 2025, Elevance reported first quarter results for the period ending March 31st, 2025. For the quarter, revenue grew 14.6% to $48.8 billion, which topped estimates by $2.55 billion. Adjusted earnings-per-share of $11.97 compared very favorably to adjusted earnings-per-share of $10.64 in the prior year and was $0.49 more than expected.

Revenue growth was primarily a result of higher premium yields in the Health Benefits, growth in Medicare Advantage and Individual ACA memberships, and increases in product revenue for CarelonRx. These gains were once again offset by a reduction in Medicaid membership.

Eli Lilly (LLY)

Eli Lilly develops, manufactures, and sells pharmaceuticals around the world, and has about 47,000 employees globally. Eli Lilly has annual revenue of $59 billion.

On May 1st, 2025, Eli Lilly reported first quarter results for the period ending March 31st, 2025. For the quarter, revenue grew 45.2% to $12.7 billion, which was in-line with estimates.

Adjusted earnings-per-share of $3.34 compared very favorably to adjusted earnings-per-share of $2.58 in the prior year, but this was $0.12 lower than expected.

Volumes company-wide were up 53% for the period, but pricing was lower by 6%. U.S. revenue increased 49% to $8.49 billion, as volume was up 57% while pricing declined 7%. International revenues grew 38% to $4.24 billion as volumes improved 46%.

Revenue for Mounjaro, which helps patients with weight management and is the company’s top gross product, totaled $3.84 billion, up from $1.81 billion a year ago. Demand remains very high for the product.

Zepbound, which is also used to treat patients with obesity, had revenue of $2.31 billion for the quarter compared to just $517 million in the prior year. This product launched in November of 2023 and has seen impressive growth since.

Verzenio, which treats breast cancer, grew 10% to $1.16 billion.

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