These dividend-paying stocks could be in the 'early innings' of a rally

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Wolfe Research says it's time to step back into health-care stocks. CNBC Pro screened for dividend-paying companies with upside potential.

It's time to step back into health-care stocks, according to Wolfe Research. The sector was one of the worst performing over the past month, pulling back over 4% from September to October, technical analyst Rob Ginsberg wrote in a note on Tuesday. "As evidenced by XLV , price is back through the 50 day on this relief rally," he said. "Not yet overbought, it looks to us like the early innings of a reacceleration back towards the highs.

With global medical technology company Becton, Dickinson and Company , investors get a 1.6% dividend yield. Some 60% of analysts covering the stock rate it a buy and it has nearly 16% upside to the average price target, according to FactSet. Becton shares are little changed year to date. Health insurer Cigna also yields 1.6% and has nearly 13% upside to the average analyst price target. Nearly 71% of analysts who cover the stock rate it a buy, per FactSet.

 

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