3 Healthcare Stocks to Buy Hand Over Fist in October

If you are looking for a healthcare stock to add to your portfolio as October draws to a close, consider Intuitive Surgical (NASDAQ: ISRG), Merck (NYSE: MRK), and Johnson & Johnson (NYSE: JNJ). Each of them comes with a very different type of appeal. Here's why each one could be worth buying hand over fist, for the right investor.

1. Growth: Intuitive Surgical

Intuitive Surgical is a one-trick pony in that all it does is make surgical robots. That, however, is a pretty exciting medical device technology that is really only getting started. The big benefit is that surgical robots help improve patient outcomes thanks to increased precision and less invasive techniques. But there are two stories to watch here.

Image source: Getty Images.

The first issue that's important to monitor is the growth in the company's installed base of surgical robots. In the third quarter of 2025, the company's da Vinci system saw a 13% increase in its installed base. The company's newer Ion endoluminal system benefited from a 30% increase. Overall, this growth resulted in 20% more procedures using Intuitive Surgical's robots in the quarter, year over year. Very clearly, this company is still growing strongly.

The second big issue, however, is a bit more subtle. Roughly 75% of the revenue on Intuitive Surgical's income statement come from services and instruments and accessories. So the growth in the installed base is building a powerful annuity-like income stream. If you are focused on growth, Intuitive Surgical's shares are still down about 15% from their 52-week highs and could be worth a closer look.

2. High yield: Merck

Merck is one of the largest pharmaceutical companies on the planet with a very long history of success behind it. That's no small feat, given that the drug industry is highly technical, ultra competitive, and tightly regulated. The company is dealing with some company-specific and industry-wide issues right now, but it seems highly likely that it will muddle through in fine shape. Most importantly, it is likely to get through while still supporting its historically high 3.7% dividend yield.

There's nothing all that shocking going on here. Merck has some drugs that are set to see their patents expire. This is known as a patent cliff. Investors are worried that it won't find new drugs to offset the hit. The timing of new drugs may not match exactly with the loss of revenue from older drugs, but it seems likely that this is a short-term issue.

The best part here, other than the dividend being near the high end of its 10-year range, is that Merck's dividend payout ratio is a reasonable 50% or so. In other words, yield seekers can get a well-positioned drugmaker with a high yield and a dividend that looks secure.

3. Dividend King: Johnson & Johnson

If what you really want in a healthcare stock is to create an income stream that grows steadily over time, then you'll want to take a gander at Johnson & Johnson. The company is diversified across the drug and medical device sectors and is a major player in each one. While the yield is 2.7%, the real story is that J&J has increased its dividend annually for over six decades.

That streak makes J&J a Dividend King. But it isn't just any old Dividend King, it has the longest dividend streak of any healthcare stock. This clearly sets the company apart from the pack.

Given the company's size and the diversity of its business, there are almost always things to like and things to dislike about J&J. For example, on the negative side of things, it is dealing with lingering class action lawsuits around talcum powder that it sold. On the plus side, the drug business recently launched some new drugs that look like they have blockbuster potential, including Spravato, which helps patients deal with depression.

All in, if you want diverse healthcare exposure and a reliable, growing dividend, J&J will probably be your pick of this trio.

One of these healthcare stocks should fit the bill

October is almost over, but you still have time to buy Intuitive Surgical, Merck, and Johnson & Johnson. You probably won't buy all three, since they each have slightly different appeals. But if you take the time to dig in, you might find that one of them ends up in your portfolio before November gets underway.

Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Intuitive Surgical and Merck. The Motley Fool recommends Johnson & Johnson. The Motley Fool has a disclosure policy.