When it comes to biotech stocks, the perception from many investors is that they are essentially lotto tickets. These make it or break it firms hinge their entire future on a single drug or therapy. While that may be true for some small-caps, for the elder statesmen of the sector, it’s the powerful drug companies. Here, investors can find billion dollar balance sheets, hefty cash flows and even some of the fastest growing dividends around.
And that describes our Best Dividend Stocks List pick in the sector to a “T.”
Our pick has used its early mover status in the biotechnology sector to build out an impressive array of leading drugs. This includes blockbusters that just mint cash for its bottom line. The best part is, our pick has been able to use its immense size and scale to keep the party going for investors by pivoting its pipeline into more marketable drugs. This includes its recent wins at the “Super Bowl” of healthcare conferences.
Check out our original pick here.
Our pick has developed a new sort of cancer fighting drug that has shown beyond impressive results in its first trial. So impressive, in fact, that our pick is already moving forward with continued trials. What’s great is that the breakthrough drug attacks a previously “undruggable” cancer mutation. Analysts have already hinted that this new therapy could be a game changer for the oncology sector and instantly become another blockbuster for the firm.
With its history of dividends and buybacks, the drug should only enhance our pick’s future ability to reward investors. Proving that biotech stocks are more than just lotto tickets after all.
To summarize, here are five reasons why you should own this stock:
- Thanks to its portfolio of blockbuster drugs, our pick pulled in close to $25 billion in sales – an increase of 4% year-over-year.
- Since the firm started paying a dividend in 2011, our pick has grown its quarterly payout by more than 400%.
- Replaced its aging pipeline with new drugs as well as launching a portfolio of biosimilars on its existing blockbusters to limit lost revenues.
- New technology that could upend the entire oncology market and send billions of new revenues its way.
- Healthy payout ratio of 41% and growing yield of 3.3%.
Our Best Dividend Stocks List has 20 of the highest-rated stocks by our proprietary rating system. Go Premium to find out the entire list.