Solid Dividend Growth Earns Biotech Giant Spot on the Best Dividend Stocks List
Alejandro Barreto Oct 24, 2018
Dividend.com has added an international healthcare stocks to the Best Dividend Stocks List and removed an energy producer from the list.
Healthcare remains one of the most dynamic sectors around. With a growing and aging population, demand for healthcare solutions and therapies continues to grow. Perhaps the most exciting of these could be the various biotech names. Thanks to long-term trends and a hefty dose of innovation, revenues and profits for various biotech stocks remain robust.
The problem is, many biotech stocks live up to their reputation as “lotto tickets.” Most drugs fail to get an approval from regulatory bodies. So, finding a biotech stock that has multiple approvals, generates billions in revenues and pays a growing dividend is rarer than diseases these firms aim to treat.
Luckily for our new Best Dividend Stocks List pick, it has all three spades.
As one of biotech’s elder statesmen, our new pick has been generating profits and cash flows from its portfolio of blockbuster drugs for decades. Moreover, our new pick has been sharing the love with investors in a big way and thanks to the repatriation tax benefit it’s handing even more cash back to investors through dividends/buybacks.
But in healthcare, you’re only as good as your pipeline. Here, again, our pick has plenty of opportunity for future growth. This includes new cancer therapies, cardiovascular drugs and inflammatory diseases. And let’s not forget that its robust cash flows/balances allow it to do some hefty M&A.
All in all, our new healthcare pick could be the best blend of growth and stability around.
To summarize, here are five reasons why you should own this stock:
- Blockbuster portfolio of biotech drugs generated revenues of more than $10 billion in the first half of 2018 alone.
- Since the firm started paying a dividend in 2011, our pick has grown its payout by over 300%.
- Replacing its aging pipeline with new drugs as well as launching a portfolio of biosimilars on its existing blockbusters to limit lost revenues.
- Big winner from the Republican tax plan and repatriation holiday – with nearly $30 billion in cash and short-term investments on its balance sheet as of June 30, 2018.
- Healthy payout ratio of 38% and growing yield of 2.62%.
Click here to check last week’s Best Dividend Stock List pick.
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