3 reasons to buy Ramsay Health Care shares today

Ramsay Health Care Ltd (ASX: RHC) shares have been strong performers so far in 2026.

Shares in the S&P/ASX 200 Index (ASX: XJO) healthcare stock closed on Wednesday trading for $38.90 apiece.

That sees the share price up 13.2% since market close on 31 December, which compares very favourably to the 0.8% loss posted by the benchmark index over this same period.

Atop those share price gains, the ASX 200 healthcare stock also pays dividends. Over the past 12 months, Ramsay Health Care has paid out 82.5 cents a share in fully franked dividends.

At Wednesday’s closing price, that sees the stock trading on a fully franked trailing dividend yield of 2.1%.

And looking to the months ahead, Sanlam Private Wealth’s Remo Greco believes the private hospital and care centre operator is well-positioned to keep outperforming (courtesy of The Bull).

Should you buy Ramsay Health Care shares today?

“The private hospital operator posted a better than expected first half year result for fiscal year 2026,” Greco said, citing the first reason he has a buy recommendation on Ramsay Health Care shares.

“Revenue of $9.3 billion from contracts with customers was up 9.7% on the prior corresponding period. Underlying net profit after tax of $171.7 million was up 8.1%,” he noted.

Ramsay Health Care CEO and managing director Natalie Davis was clearly pleased with those results, released on 26 February.

“Ramsay’s positive momentum has continued in the first half of FY26, with revenue, EBIT and NPAT growth as we execute on our three core priorities to improve performance and returns to shareholders,” Davis said on the day.

Moving on to the second reason Greco is bullish on the stock is the company’s decision to divest its 52.79% shareholding in European private health care provider Ramsay Santé.

“RHC is spinning off its European business, which we believe paints a brighter outlook,” Greco said.

Commenting on the rationale for the divestment in February, Ramsay Health Care stated:

The proposal to separate recognises the fundamentally different geographic focus, strategies and capital profiles of Ramsay and Ramsay Santé. The board believes that a separation would enhance shareholder value over time.

Among the potential benefits, the board noted the separation will enable Ramsay to simplify its portfolio and allow management to focus on “the transformation and growth potential of its core Australian hospitals business”.

Which brings us to the third reason you might want to buy Ramsay Health Care shares today.

Namely, the company’s growing passive income potential.

“The fully franked interim dividend of 42.5 cents was up 6.3% and potentially points to a stronger final dividend for the full year,” Greco concluded.

The post 3 reasons to buy Ramsay Health Care shares today appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.