It pays to consider pharmaceuticals for income.
Investing in consumer staples appeals to many income seekers because the purchase of stock in companies that provide everyday goods and services seems almost like a sure thing. Many investors overlook the staples-like qualities of pharmaceutical companies, however. That's unfortunate, because in many ways the drugs that make your body hurt less and prolong your life are even less likely to be trimmed from a daily budget than paying the phone bill or buying soap. In addition to providing unrivaled stability, pharma stocks also normally offer generous dividends. That's because the reliable sales of maintenance drugs fuel consistent payments to shareholders. Here are nine pharmaceutical stocks offering reliable dividends.
Next:Takeda Pharmaceutical Co. (ticker: TAK) Credit
(BEHROUZ MEHRI/AFP/Getty Images)
Takeda Pharmaceutical Co. (ticker: TAK)
You may not have heard of Japan-based pharmaceutical company Takeda, but a quick look at its operations show why this is a great dividend stock for investors anywhere in the world. It has a robust over-the-counter and consumer product business on top of vaccines and pharmaceuticals used to treat maladies from cancer to acid reflux. With sales worldwide, from Japan to Europe to Africa, this is diversified pharmaceutical investment can give your portfolio a global flavor as well as significant yield potential.
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Current yield: 4.3%
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It pays to consider pharmaceuticals for income.
Investing in consumer staples appeals to many income seekers because the purchase of stock in companies that provide everyday goods and services seems almost like a sure thing. Many investors overlook the staples-like qualities of pharmaceutical companies, however. That's unfortunate, because in many ways the drugs that make your body hurt less and prolong your life are even less likely to be trimmed from a daily budget than paying the phone bill or buying soap. In addition to providing unrivaled stability, pharma stocks also normally offer generous dividends. That's because the reliable sales of maintenance drugs fuel consistent payments to shareholders. Here are nine pharmaceutical stocks offering reliable dividends.
Takeda Pharmaceutical Co. (ticker: TAK)
You may not have heard of Japan-based pharmaceutical company Takeda, but a quick look at its operations show why this is a great dividend stock for investors anywhere in the world. It has a robust over-the-counter and consumer product business on top of vaccines and pharmaceuticals used to treat maladies from cancer to acid reflux. With sales worldwide, from Japan to Europe to Africa, this is diversified pharmaceutical investment can give your portfolio a global flavor as well as significant yield potential.
Current yield: 4.3%
Novartis (NVS)
Switzerland-based Novartis is another multinational player that is very much a worldwide health care company. NVS focuses on ophthalmology with its Alcon line of contact lenses and solutions, as well as branded immunology and neuroscience drugs. Novartis is also a player in medical equipment, with various surgical packs and other instruments. This helps add an additional revenue stream beyond patented drugs, lending an added layer of stability.
Current yield: 3.5%
Gilead Sciences (GILD)
Research-based drug company Gilead is part of the biotechnology revolution, focused on niche treatments that serve previously unmet medical needs in the U.S., Europe and other nations. This includes products to treat HIV/AIDS, liver diseases and rare cancers. Obviously the patient pool is smaller in cases like these, but the lack of other viable treatments means that these drugs command premium prices. That fuels significant profits and significant dividends for shareholders.
Current yield: 3.9%
GlaxoSmithKline (GSK)
GlaxoSmithKline is another company that operates various business segments to shore up its revenue, including popular consumer products like Aquafresh toothpaste, Boost nutrition shakes and Tums antacids. That's on top of a robust pipeline of patented pharmaceuticals and a billion-dollar research and development budget to keep the new cures coming. It's the best of both worlds: A higher-reward line of branded drugs and a rock-solid portfolio of consumer products with long-term potential.
Current yield: 5.8%
AstraZeneca (AZN)
AZN has a wide array of pharmaceuticals treating a host of serious conditions, including maintenance drugs for the most common cardiovascular and kidney disorders. Given the seriousness of these diseases, patients will logically cut back on just about anything before forgoing the life-saving treatments that AstraZeneca provides. At its core, this is the appeal of pharmaceutical stocks. Maintenance drugs are reliable budget items in many households, and as a result fuel reliable dividends.
Current yield: 3.8%
Sanofi (SNY)
Sanofi is a pharmaceutical company that focuses on serious and sometimes little-known genetic conditions such as Gaucher disease and multiple sclerosis as well as certain kinds of cancers. Once again, it's easy to see why this pharmaceutical company's products continue to be must-buy items for its patients around the world. Additionally, this $100 billion drugmaker also has more run-of-the-mill maintenance drugs for conditions like arthritis or diabetes, making it a good way to play both high-priced niche pharmaceuticals as well as mass-market treatments.
Current yield: 4%
Pfizer (PFE)
One of the best-known drugmakers, this U.S.-based health care giant is a Dow Jones Industrial Average component and has been in operations in some way for about 170 years. Its "blockbuster” drugs at present include a family of vaccines for pneumonia and similar infections under the Prevnar brand, fibromyalgia treatment Lyrica and blood thinner Eliquis. Surely you've seen advertisements for one if not all of these, which each bring in more than $1 billion in annual revenue and exemplify the big potential of PFE and its product pipeline.
Current yield: 3.6%
Bristol-Myers Squibb Co. (BMY)
Another well-known legacy pharmaceutical company is Bristol-Myers, which has roots dating back to 1887 and has manufactured a host of popular products over the years, including the original antibacterial blockbuster, penicillin. However, this is hardly a company stuck in the past. In January, BMY offered a staggering $74 billion to acquire next-generation biotech stock Celgene. This shows both not only how deep-pocketed Bristol-Myers is, but also its desire to continue to dominate the sector instead of resting on its laurels.
Current yield: 3.57%
Amgen (AMGN)
Though very much one of those aggressive next-generation biotechs in the same vein as recently-acquired Celgene, Amgen is hardly a lightweight with a market capitalization of more than $100 billion. In fact, it's in the top 10 largest drugmakers of any kind by that measure of size. Though created in the 1980s and lacking the long pedigree of other drugmakers, the company made a name for itself by attacking conditions that were mostly overlooked by big pharma at the time – kidney failure, osteoporosis and bone cancer, among others. These drugs have been literal life-savers for patients and big profit centers for Amgen over the decades.
Current yield: 3.2%
Solid pharma stocks to buy for income.
Takeda Pharmaceutical Co. (TAK)Novartis (NVS)Gilead Sciences (GILD)GlaxoSmithKline (GSK)AstraZeneca (AZN)Sanofi (SNY)Pfizer (PFE)Bristol-Myers Squibb Co. (BMY)Amgen (AMGN)1 of 12
Jeff Reeves, Contributor
A veteran journalist with extensive capital markets experience, Jeff Reeves began writing for ... Read more
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