Pharmaceutical and biotech stocks are rarely seen as effective dividend stocks. Although drugs are also relatively non-cyclical these stocks are often impacted by ever-changing regulatory environment and the strength of a company’s drug pipeline. Yet, some of the most well-regarded names are also very robust dividend payers. These companies provide income to shareholders by using their magnitude to regularly refresh their drug portfolios. I’ve made a list of other value-adding dividend-paying stocks in the pharma and biotech industry for you to consider for your investment portfolio.
AbbVie Inc. (NYSE:ABBV)
ABBV has a sumptuous dividend yield of 4.13% and has a payout ratio of 79.45% . Besides the potential capital gains, ABBV’s yield alone is better than the low risk savings rate. Plus, a 4.13% yield places it amidst the market’s top dividend payers. AbbVie is also a strong prospect for its future growth, with analysts expecting the company’s earnings to grow by an exciting triple-digit over the next three years. More detail on AbbVie here.
Merck & Co., Inc. (NYSE:MRK)
MRK has a good-sized dividend yield of 3.27% with a high payout ratio . MRK’s DPS have risen to US$1.92 from US$1.52 over a 10 year period. During this period, they haven’t missed a payment, as one would expect from a company increasing their dividend. Analyst estimates for Merck’s future earnings are certainly promising, predicting a triple digit earnings growth over the next three years. Dig deeper into Merck here.
Johnson & Johnson (NYSE:JNJ)
JNJ has a good dividend yield of 2.63% with a generous payout ratio . The company’s dividends per share have risen from US$1.66 to US$3.36 over the last 10 years. The company has been a dependable payer too, not missing a payment in this 10 year period. Analysts are expecting an impressive triple digit earnings growth over the next three years. More detail on Johnson & Johnson here.
For more solid dividend paying companies to add to your portfolio, explore this interactive list of top dividend payers.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.