5 things to know about healthcare sector investment

The healthcare sector of the stock market is growing fast, and could be a good addition to stock portfolios, according to a Seeking Alpha report.

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Here are five key concepts:

1. The healthcare sector includes the some of the most consistent and fast-growing companies.

2. The growing older population is driving opportunity in the healthcare space, as older people consume more healthcare than younger people. The population of people 65 years or older is expected to reach 20 percent of the overall population by 2050.

3. S&P 500’s healthcare sector offers investments for nearly every type of investor, including:

• High-quality blue-chip dividend growth stocks
• “Exceptionally fast-growing” pure growth stocks

4. The companies specifically highlighted in the report include:

• Johnson & Johnson
• Pfizer
• UnitedHealthcare Group
• McKesson
• Actavis
• Celgene Corporation

5. Not all of the S&P 500 healthcare constituents are consistent growers, and not everyone in this sector are as attractive as they’ve been in years past. “This is not to say that they are no longer good investments, nor is it to suggest that they have become risky,” wrote the article’s author. “Instead, this simply implies that the easy returns enjoyed over the last couple of years may not come so easily or be as high as they were in recent years post the Great Recession and the introduction of the Affordable Care Act.”

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