Pharmaceutical Stocks to Buy
Best US Pharmaceutical Stocks: Low-risk drug makers can be high-yielding defensive investments. In 2022, pharmaceutical stocks are just what the doctor ordered.
Pharmaceutical stocks are a fantastic example of investments that are safe havens in difficult times, especially in the present “risk off” environment on Wall Street. People will continue to spend money on medicine regardless of inflation or job trends, making health care one of the most stable sectors. Furthermore, the World Health Organization predicts that the number of individuals aged 60 and older would nearly quadruple by 2050 compared to 2015 levels, implying a significant increase in prescription drug spending to keep seniors healthy and active as their bodies age.
The following nine pharmaceutical stocks all have current yields of more than 3% and share prices that have outperformed the broader market so far in 2022. Dividend yields are calculated using the stock’s most recent dividend, or MRD, for the next four quarters. [ Pharmaceutical Stocks to Buy ]
AbbVie Inc. ( Code: ABBV)
Over the previous three years, AbbVie has been a highly volatile pharma stock, rising from the low $50s around the end of 2016 to a high of around $120 in 2018, before plummeting to around $65 amid the pandemic-related disruptions of 2020. However, because to the robust performance of its branded biopharmaceutical business, ABBV is once again ascending, reaching fresh all-time highs of nearly $150 this year. [ Pharmaceutical Stocks to Buy ]
It’s one of the few stocks with a profit in an otherwise down year on Wall Street, and it also pays a consistent and hefty dividend yield. In fact, if you follow AbbVie’s 2013 separation back to its beginnings as a corporation, you’ll find at least 25 years of dividends.
Dividend yield (MRD): 3.7%
Amgen Inc. ( Code: AMGN)
Amgen, which was founded in the 1980s, lacks the deep roots of certain 100-year-old pharmaceutical companies. Its youth, on the other hand, is a selling feature, as it has long been a leader in new medicines and biopharmaceutical applications. Several of the company’s fast-growing medications, such as the osteoporosis treatment Prolia and the osteoporosis drug Evenity, are seeing rapid sales growth. [ Pharmaceutical Stocks to Buy ]
Prolia’s sales increased by 12% to $852 million in the first quarter, while Evenity’s sales increased by 59 percent to $170 million. Thanks in part to these impressive results, AMGN stock has gained over 10% since January 1. But, more crucially, this expansion should keep dividends consistent and large for many years to come.
Dividend yield: 3%
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Cardinal Health Inc. ( Code: CAH)
CAH is an appealing dividend investment with a substantial pharma footprint thanks to its prominence as one of the major medication distributors, even if it doesn’t study branded remedies on its own. It is technically an integrated medical company that offers products and services beyond just drugs. [ Pharmaceutical Stocks to Buy ]
Cardinal’s pharmaceutical division, which accounts for around 90% of the company’s revenue and profit, sells branded third-party drugs, generic pharmaceuticals, over-the-counter medicine, and consumer items to pharmacies and health-care facilities. Cardinal’s margins are a little lower because it’s mostly a middleman and generics player in the pharma business, but it delivers consistent profits that have fueled 35 dividend increases in a row.
Dividend yield: 3.4%
Gilead Sciences Inc. ( Code: GILD)
Gilead Sciences is a $80 billion biopharmaceutical business that specializes in “orphan medications” and medicines for unmet medical needs. These include liver illnesses and uncommon cancers, but GILD also offers maintenance medications for cardiovascular conditions that affect a much larger population of people. [ Pharmaceutical Stocks to Buy ]
The diverse portfolio of services contributes to steady dividend payouts to stockholders. Current quarterly payments are 73 cents per share, up 70% from 43 cents a share at the start of 2016, demonstrating that this is a pharmaceutical firm dedicated to sharing its success with shareholders.
Dividend yield: 4.5%
GlaxoSmithKline PLC (GSK)
GlaxoSmithKline is a Big Pharma veteran with high-margin products that should continue to perform over the long run, thanks to a robust portfolio of respiratory ailment therapies and HIV drugs. GSK has agreed to buy Sierra Oncology Inc. (SRRA) for $1.9 billion to enhance its oncology capabilities, in addition to significant moneymakers like its COPD drug Trelegy. [ Pharmaceutical Stocks to Buy ]
Furthermore, the health-care behemoth’s plans to spin off its consumer-focused goods in July in order to streamline and focus operations could help it maintain its supremacy in the future. With an above-average dividend and a bright future, it’s no surprise that GSK stock has gained a tiny amount year to date in 2022 despite the stock market’s volatility.
Dividend yield: 3.2%
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Novartis AG ( Code: NVS)
GlaxoSmithKline is a Big Pharma veteran with high-margin products that should continue to perform over the long run, thanks to a robust portfolio of respiratory ailment therapies and HIV drugs. GSK has agreed to buy Sierra Oncology Inc. (SRRA) for $1.9 billion to enhance its oncology capabilities, in addition to significant moneymakers like its COPD drug Trelegy. [ Pharmaceutical Stocks to Buy ]
Furthermore, the health-care behemoth’s plans to spin off its consumer-focused goods in July in order to streamline and focus operations could help it maintain its supremacy in the future. With an above-average dividend and a bright future, it’s no surprise that GSK stock has gained a tiny amount year to date in 2022 despite the stock market’s volatility.
Dividend yield: 3.6%
Pfizer Inc. ( Code: PFE)
Pfizer is one of the most dependable income bets on Wall Street, with more than 330 consecutive dividend payments and a streak of 12 consecutive years of increasing dividends. Investors have been trying to make sense of Pfizer’s stock post-pandemic for the past year, now that the massive boost from their leading COVID vaccinations is mostly in the rearview mirror. [ Pharmaceutical Stocks to Buy ]
However, because to billions in quarterly revenue from various goods outside of its vaccine business, such as cancer and internal medicine, the company is quite appealing right now. In 2022, shares have been fairly stable, demonstrating that it is a safer option than some other equities.
Dividend yield: 3%
Viatris Inc. ( Code: VTRS)
With a market valuation of just under $14 billion, this pharmaceutical firm is worth a look because to its continuous and large dividend payments. Viatris began trading separately in 2020 after a spinoff of some Pfizer assets was united with Mylan NV to form a new firm. It provides end users with prescription brand pharmaceuticals, generic drugs, biosimilar drugs, and active pharmaceutical components. [ Pharmaceutical Stocks to Buy ]
Infectious disorders, cancer, ophthalmology, and dermatology are among the ailments treated by the company. With yearly earnings per share of about $3.50 but dividends of only 48 cents per year, there’s plenty of room for future rises – but investors get a nice current return to make the wait worthwhile.
Dividend yield: 4.1%
Grifols SA ( Code: GRFS)
Grifols are a brand you’ve probably never heard of. You’re not alone, since this Spanish pharmaceutical company has a market capitalization of roughly $16 billion, making it far smaller than many American pharmaceutical behemoths. It has, however, carved out a profitable niche for itself in the field of blood plasma-derived medications and “hemoderivatives.” [ Pharmaceutical Stocks to Buy ]
Despite the fact that its dividends are paid twice a year, most recently 46 cents in June and 20 cents in October, the overall payouts add up to a yield that is roughly four times that of the typical domestic large cap in the S&P 500 index.
Dividend yield: 5.0%
9 best pharmaceutical stocks to buy for income:
- AbbVie Inc. (ABBV)
- Amgen Inc. (AMGN)
- Cardinal Health Inc. (CAH)
- Gilead Sciences Inc. (GILD)
- GlaxoSmithKline PLC (GSK)
- Novartis AG (NVS)
- Pfizer Inc. (PFE)
- Viatris Inc. (VTRS)
- Grifols SA (GRFS)
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