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Practical Advice from

9 Top Pharmaceutical Stocks to Buy for the Dividends



When investors are on the hunt for income-driving dividend stocks, they often gravitate toward utilities or consumer staples names. And well they should. Those businesses are essentially recession- proof, so the income — in the form of dividends — they pass along to shareholders is quite reliable.

Conversely, pharmaceutical stocks are rarely seen as effective dividend stocks. Although drugs are also relatively non-cyclical, these stocks are often impacted by an ever-changing regulatory environment and the ever-changing strength or weakness of a drugmaker’s portfolio and pipeline.

As it turns out, however, some of the best-known Big Pharma names are also very solid dividend providers. These drugmakers dole out income to shareholders by leveraging their size to constantly refresh their drug portfolios. In fact, the average dividend yield for all the major pharma stocks right now (and bear in mind there are some that pay nothing) is a healthy 2.35%. That’s still less than the typical 4% payout utility stocks boast right now.


Given the potential for growth within the pharmaceutical sector versus very limited potential for capital appreciation among utility stocks, that’s not a bad yield at all.

Of course, the stocks that we will focus on today have substantially larger payouts.

Here’s a closer look at the top nine pharmaceutical stocks that income hunters should consider at the moment.

Prices and data are from the original InvestorPlace story published on February 13, 2017. Click on ticker-symbol links in each slide for current prices and more.

This slide show is from InvestorPlace, not the Kiplinger editorial staff.


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