Dividend logo

You know what costs about $5? A Powerball ticket and shares of Celldex Therapeutics, Inc.

In fact, you can buy nearly two shares of CLDX for a Lincoln. And that highlights another relationship as well. For many investors, the biotech sector is much like playing the lotto. It’s a vast sea of early stage development companies, betting their futures on just one drug. To say the sector is risky would be an understatement.

But like most sectors, stereotypes based on previous histories rule the underlying narrative in the biotechs.

Believe it or not, you can actually score some decent dividend yields in the sector. For every CLDX, there’s a biotech elder statesmen just minting cash flows from its portfolio of advanced drugs. For investors, you can have your growth and dividends at the same time.

Volatility, Thy Name Be IBB

Along with its sister defensive sectors – such as consumer staples and utilities – healthcare stocks are often viewed as a boring and stable portfolio element. Just look at giant Johnson & Johnson (JNJ ). After all, in times of duress, consumers will still go to the doctor and take their medicine. That recession-resistant nature provides for steady earnings growth, hefty cash flows and larger-than-average dividends. Those attributes are exactly what many dividend investors are looking for.

To read the Full Story, Go Premium or Log In

Popular Articles

Premium Photodune 514786 stock market diagram xs 300x212
News

The Wrap for February 22: Toned Down Trade Boosts Market

Despite being a shortened week – thanks to the President’s Day holiday – there was plenty of...

Premium Slowing%20earnings%20growth
News

Earnings Aren’t as Good as We Hoped

Given all the volatility that’s hit the market over the last few quarters, the last thing...

Premium Data%20center
News

Technology Giant With Strong Cash Flows Maintains Position on Best Dividend Stocks List

The technology sector is known for its fast growth, disruption and game-changing abilities. The...