Say what you will about the pharma industry but their stocks are extremely consistent and many investors consider them to be lucrative options. As is the case with most investments in stock, dividends are the main aim and the stocks offered by pharmaceutical companies stand apart from others due to the fact that they usually generate very strong cash flow that allows them to pay and offer higher dividends.
The profits that most pharmaceutical companies generate by the sale of their drugs is usually reinvested into research and development for more drugs but some companies have found a healthy balance in their sales and can also offer their investors higher dividend yields. If you’re searching for the best companies out of these, the following three are big pharma stocks which are favorites for any investor who is seeking high yield dividends.
Novartis
Paying out dividend yields that amount to 3.3%, Novartis is a favorite among investors. Coupled with strong growth as well as a good track record in the marketplace, Novartis is a safe company to invest in. Novartis also has a strong history of consistent growth, having increased the overall amount of dividend yields it provides each year. Moreover, it also has a global platform and easily generates good cash flow. It is also considered to be the most profitable pharma companies in the world. While some earnings have been in the decline, the future prospects of Novartis are great. Novartis is also considered to be a trailblazer in the field of cancer treatment research.
Pfizer
Providing the highest yields in dividends as compared to other pharma stock, Pfizer can give investors a whopping 3.6% with great consistency. It is extremely rare for their yields to go below the 3% mark. Pfizer is also another pharma company which has a solid track record in the pharmaceutical industry. Recent investments in research and development have allowed Pfizer to produce exceptional drugs including Ibrance and Eliqus. Sales of both have been great which has allowed investors to be optimistic about the overall growth of Pfizer. The consistent track record of Pfizer has many expecting bigger and better from the company in terms of products and yields.
AbbVie
While providing lesser yield than Pfizer or Novartis, AbbVie offers a generous 3% and is expected to continue growing in the stock market as well as the pharma industry. While there are other pharma stocks that you can invest in for higher yields, the reason why AbbVie is favored is the amazing growth that the stock has shown. Over the course of 5 years, AbbVie has managed to increase its payout of dividends by a total of 77%. This growth is not only fast but is also consistent and with AbbVie’s various drugs selling out well, the company is in a good position to continue growing and offering investors with more.
As is the case with any stock, you should always invest after careful consideration of all the risks associated with pharma stock. While the dividends are high, market opinion can and does cause major changes which you should take into account before making any investments.
