With the Dow Jones Industrial Average and S&P 500 Index off to their worst start since 1970, investors are increasingly turning to defensive stocks to protect against further downside risks. Shares of pharmaceutical companies have historically been considered defensive plays, with so-called Big Pharma stocks benefiting from both economies of scale and economies of scope in terms of research and innovation.
While 2022 has been a down year for most stocks, the S&P 500’s pharmaceutical index is up over 3% year-to-date. By comparison, the S&P 500 Index has declined over 16% on the year as of May 26. Pharmaceutical companies that have posted strong revenue growth and expanded their product portfolio have been in a position to outperform.
Our latest healthcare reaffirmation is a Big Pharma blue chip with a proven track record in drug innovation. The stock has increased its dividend payout for more than 15 consecutive years, giving income investors a considerably higher yield than the healthcare average. The stock’s next ex-dividend date is estimated to be Tuesday, July 19.
You can check out the Best Health Care Dividend Stocks List to explore all the stocks.