Healthcare—along with consumer staples (“buying stuff”) and utilities (“keeping the lights on”)—provide portfolio stability. Plus, they usually pay dividends, too!
Of the three safety sectors, healthcare is a steady growth market, too. Consider these stats from the Centers for Medicare & Medicaid Services:
- National health spending is projected to grow at an average annual rate of 5.4% for 2019-28 and to reach $6.2 trillion by 2028.
- National health expenditures are projected to grow 1.1 percentage points faster than gross domestic product per year during that same time period.
- Between 2019 and 2028, healthcare’s share of the economy will rise from 17.7% to 19.7%.