Orthopedic device maker Zimmer Holdings (ZMH) looks ready for a modest bump to its own dividend too. Right now, the $13 billion firm pays out an 18-cent quarterly dividend that adds up to a 0.98% yield. But deep double-digit margins clear the way for bigger payouts in the next quarter.
Zimmer is the world's biggest supplier of knee and hip replacements, treatments that have gained in popularity as patients opt for the vastly improved mobility that orthopedic implants provide. As scores of baby boomers start reaching joint replacement age, Zimmer should see its volumes increase considerably. Top line numbers have already been climbing steadily over the last few years.Whatever your politics, increased patient coverage though programs like supported by Obamacare should help to boost the amount of sales that come from patients who aren't concerned with the financial implications of a costly join replacement procedure. While Zimmer is far from a high yield stock, it's moving in the right direction with the payout it started in 2012; earnings at the end of this month could be a catalyst for upside in shares. To see these dividend plays in action, check out the at Dividend Stocks for the Week portfolio on Stockpickr. And if you haven't already done so, join Stockpickr today to create your own dividend portfolio. -- Written by Jonas Elmerraji in Baltimore.
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