A big dividend yield is nice to see, but it shouldn't be the only thing you look at when buying a stock. The actual business behind the yield is, in fact, more important. That's why you'll need to think carefully about your risk tolerance when you look at high-yielding healthcare stocks like Kenvue (KVUE 0.60%), Pfizer (PFE +0.36%), and Omega Healthcare (OHI 0.49%). Here's a quick review of all of these high-yield healthcare stocks.
Kenvue gets off on the wrong foot
Kenvue was spun off from Johnson & Johnson (JNJ 1.07%) in mid-2023. It basically owns its former parent's over-the-counter products. It is more like a consumer staples company than a healthcare company in many ways, even though it sells things like Tylenol. Tylenol is notable right now because it was just highlighted as a potential risk if taken during pregnancy. That led investors to dump the stock.
NYSE: KVUE
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On top of that, the healthcare-focused consumer staples maker is also performing a bit poorly right now. In the second quarter of 2025, sales fell 4% and organic sales dropped 4.2%. Adjusted earnings came in at $0.29 per share, down from $0.32 in the same quarter of 2024. It isn't shocking for a newly separated business to have some issues as it starts out its new, stand-alone life. And given the generally stable nature of consumer staples products, it is probably worth giving the company the benefit of the doubt.
But at the same time, the stock has fallen notably, and the yield has risen to a rather high 5.5%. The average dividend yield for a consumer staples stock is 2.7%. If you can handle some near-term uncertainty and have a contrarian streak, Kenvue may be of interest to you. Just go in recognizing that there isn't much of a dividend track record to go on here (though it is worth noting that its former parent is a Dividend King).
Pfizer is doing what needs to be done
Pfizer is one of the oldest and most respected pharmaceutical companies in the world. It has proven that it knows how to survive in what is a very technologically complicated and competitive business. Yet the stock has a huge 6.9% yield right now as it faces down some typical industry headwinds.
There are perception issues around drugmakers that are a hindrance today. But Pfizer is working to get back into favor, noting that it recently inked a deal with the U.S. government to make sizable capital investments in the country, keep consumer costs low, and avoid tariff issues. In addition, the company recently inked a deal to buy Metsera (MTSR 0.23%) to bolster its drug pipeline. That's an effort to offset the expected hit from a patent cliff the company is facing and was necessitated by Pfizer's lack of success with its own pipeline of drug candidates.
NYSE: PFE
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However, dealing with the government and patents is just normal for the drug industry. Still, the high yield highlights a real risk. Pfizer cut its dividend when it acquired Wyeth back in 2009. With the payout ratio hovering in the 90% range, which is high, the board of directors might choose to cut the dividend again as it completes its Metsera deal. It is probably best to view Pfizer as a turnaround story, noting that the stock price has fallen nearly 60% since late 2021. If the dividend holds, it is icing on the cake.
3. Omega Healthcare stood tall through the storm
Omega Healthcare is going to be the easiest stock for dividend investors to love on this list. The company is a senior-housing-focused real estate investment trust (REIT). The dividend yield is an attractive 6.6%. But the big story is around what happened to the dividend during the coronavirus pandemic.
That period of time was particularly difficult for senior housing assets, since the elderly were most at risk and COVID-19 spread most easily in group settings. Omega had to deal with a large number of tenants who couldn't pay their rent. That process is nearly over -- and here's the impressive part -- the dividend was sustained right through all of it. Many peers resorted to dividend cuts. In fact, Omega is starting to grow again, with over half a billion dollars in assets acquired in the second quarter of 2025 alone.
NYSE: OHI
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The worst is over, and now Omega can get back to more normal operations. Only buy it if you don't mind investing in an industry that was in the news in a bad way just recently. That said, this REIT is offering a huge dividend yield and is, frankly, one of the cleanest dirty shirts in the senior housing niche.
Don't just look at yield when buying these stocks
Kenvue, Pfizer, and Omega are all interesting dividend stocks with high yields. But you need to dig into each of the stories before you hit the buy button. Of the trio, Omega is probably the least risky choice, given how well it survived the pandemic. Kenvue is a bit of an unknown, but its business is fairly stable despite some post-J&J separation wobbles. And Pfizer is almost certain to survive and thrive, but what happens to the dividend is less clear, given the company's dividend history.
