Healthcare Stocks Present Dividend Opportunities Amid Risks
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3h ago
0mins
Should l Buy PRGO?
Source: Fool
- Perrigo's Value Trap: Perrigo's stock has plummeted by 90% over the past decade, and while it currently offers an 8.2% dividend yield, declining sales and analyst downgrades suggest investors should tread carefully as further price declines may occur.
- Pfizer's Rebound Potential: With a dividend yield of 6.7%, Pfizer faces declining COVID-19 revenues; however, strong growth in non-COVID drugs indicates a potential turnaround, making it a buy opportunity while dividends remain above average.
- Embecta's Turnaround Potential: Embecta's shares have dropped 37% in the past year, yet its 5.5% forward dividend yield and the CEO's optimistic outlook on the GLP-1 product line could present a buying opportunity, potentially improving investor sentiment if initial successes are achieved.
- Attractiveness of Healthcare Sector: While the healthcare sector is considered recession-resistant, investors must remain vigilant against potential yield traps and conduct thorough due diligence to avoid value traps when selecting investment targets.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy PRGO?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on PRGO
Wall Street analysts forecast PRGO stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for PRGO is 20.33 USD with a low forecast of 18.00 USD and a high forecast of 23.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
3 Analyst Rating
1 Buy
2 Hold
0 Sell
Moderate Buy
Current: 14.270
Low
18.00
Averages
20.33
High
23.00
Current: 14.270
Low
18.00
Averages
20.33
High
23.00
About PRGO
Perrigo Company plc is a provider of over the counter (OTC) health and wellness solutions that are designed to enhance individual well-being. Its segments include Consumer Self-Care Americas (CSCA) and Consumer Self-Care International (CSCI). The CSCA segment comprises of its consumer self-care business in the United States and Canada. It primarily provides its customers self-care products that are sold and marketed under the customer's own brands and/or exclusive brands. The CSCI segment comprises of its consumer self-care business outside of the United States and Canada, primarily in Europe and Australia. These products are developed, manufactured, marketed, and distributed by the Company. Its product categories include Upper Respiratory, Pain and Sleep-Aids, Skincare and Personal Hygiene, Digestive Health, and Nutrition. Its primary branded products are sold under brand names Compeed, Dr. Fresh, Firefly, Good Sense, Mederma, Nasonex, Solpadeine, Coldrex, and Physiomer, among others.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
- Perrigo's Value Trap: Perrigo's stock has plummeted by 90% over the past decade, and while it currently offers an 8.2% dividend yield, declining sales and analyst downgrades suggest investors should tread carefully as further price declines may occur.
- Pfizer's Rebound Potential: With a dividend yield of 6.7%, Pfizer faces declining COVID-19 revenues; however, strong growth in non-COVID drugs indicates a potential turnaround, making it a buy opportunity while dividends remain above average.
- Embecta's Turnaround Potential: Embecta's shares have dropped 37% in the past year, yet its 5.5% forward dividend yield and the CEO's optimistic outlook on the GLP-1 product line could present a buying opportunity, potentially improving investor sentiment if initial successes are achieved.
- Attractiveness of Healthcare Sector: While the healthcare sector is considered recession-resistant, investors must remain vigilant against potential yield traps and conduct thorough due diligence to avoid value traps when selecting investment targets.
See More
- Class Action Reminder: The Schall Law Firm alerts investors of a class action lawsuit against Perrigo Company for violations of securities laws, concerning securities purchases made between February 27 and November 4, 2025, with a deadline to contact the firm by January 16, 2026.
- False Statement Allegations: The complaint alleges that Perrigo failed to adequately invest in repairs and operational optimization for the baby formula business acquired from Nestlé, leading to materially misleading public statements that misrepresented cost estimates to investors.
- Market Reaction: As the market became aware of Perrigo's actual situation, investor losses significantly increased, highlighting the company's major failures in information disclosure, which could adversely affect its future stock performance.
- Legal Consultation Opportunity: The Schall Law Firm offers free consultations and encourages affected investors to reach out to understand their rights, emphasizing the firm's focus on securities class actions aimed at helping investors recover losses.
See More
- Class Action Reminder: DJS Law Group alerts investors of a class action lawsuit against Perrigo Company for violations of securities laws during the trading period from February 27, 2025, to November 4, 2025, encouraging affected shareholders to contact the firm for potential claims.
- Misleading Statements Exposed: The complaint alleges that Perrigo made false and misleading statements following its acquisition of Nestlé's baby formula business, revealing significant underinvestment in maintenance that forced the company to make substantial remedial investments, thus misleading investors throughout the class period.
- Investor Losses: Shareholders who suffered losses are urged to reach out to DJS Law Group to participate in potential recovery, indicating that the company's mismanagement post-acquisition has adversely affected shareholder returns.
- Commitment to Legal Services: DJS Law Group specializes in securities class actions and corporate governance litigation, emphasizing its dedication to enhancing investor returns through balanced counseling and aggressive advocacy, showcasing its expertise and commitment to client interests.
See More

- Class Action Notice: Rosen Law Firm reminds investors who purchased Perrigo securities between February 27, 2023, and November 4, 2025, that the deadline to apply as lead plaintiff is January 16, 2026, allowing for potential compensation without any out-of-pocket costs.
- Lawsuit Background: The lawsuit alleges that Perrigo failed to disclose significant underinvestment and manufacturing deficiencies in its acquired infant formula business from Nestlé, leading to overstated financial results and subsequent investor losses when the truth emerged.
- Law Firm Credentials: Rosen Law Firm specializes in securities class actions, having recovered over $438 million for investors in 2019 alone, and was ranked first in 2017 for the number of securities class action settlements, showcasing its expertise in this field.
- Investor Guidance: Investors are advised to carefully select qualified counsel with a proven track record, avoiding firms that merely act as intermediaries, to ensure effective legal representation in the class action process.
See More
- Lawsuit Background: Rosen Law Firm reminds investors of a class action lawsuit against Perrigo Company for misleading investors regarding its business operations from February 27, 2023, to November 4, 2025.
- Investor Losses: The lawsuit alleges that Perrigo's acquisition of Nestlé's infant formula business suffered from significant underinvestment, leading to overstated financial results and subsequent investor losses.
- Operational Deficiencies: Allegations highlight significant manufacturing deficiencies in Perrigo's infant formula business, necessitating substantial capital and operational expenditures beyond the company's publicly stated cost estimates for remediation.
- Legal Proceedings: Investors wishing to serve as lead plaintiffs must file motions with the court by January 16, 2026, with all representation on a contingency fee basis, meaning shareholders incur no fees or expenses.
See More

- Lawsuit Background: Bronstein, Gewirtz & Grossman LLC has filed a class action lawsuit against Perrigo Company and certain officers, alleging violations of federal securities laws on behalf of all investors who purchased Perrigo securities between February 27, 2025, and November 4, 2025.
- False Statement Allegations: The complaint claims that throughout the class period, defendants made materially false and/or misleading statements and failed to disclose significant adverse facts about the company's business and operations, resulting in investor losses.
- Inflated Financial Results: Specifically, the lawsuit alleges that Perrigo's infant formula business suffered from significant underinvestment and manufacturing deficiencies, leading to overstated financial results, including earnings and cash flow, which misled investors.
- Investor Rights Protection: Investors have until January 16, 2026, to request to be appointed as lead plaintiff, with the law firm operating on a contingency fee basis, ensuring that investors can participate in the lawsuit without financial risk.
See More








