When investors think about biotech stocks, they instantly think of small-cap lotto tickets. Clinical drug developers with only one make-or-break compound under their belts. While that is true for a portion of the sector, the reality is, many are massive giants with billions in blockbuster drug revenues flowing into their coffers. And some even pay a hefty dividend or two. Our last Best Dividend Stocks List pick is a prime example of that.
Our pick is one of biotech’s elder statesmen with several key drugs under its wing. This includes several blockbusters across a variety of diseases and indications. This position has allowed our pick to produce ample cash flows and profits from these drugs.
As such, it pays one of the sector’s highest dividend yields – currently over 4%. The stock is expected to go ex-dividend on March 16 (estimated date).
Going forward, our pick features a robust pipeline of new potential drugs and plenty of cash for M&A firepower. This provides plenty of runway for our pick to keep up with its strong pace of dividend growth and buyback activity.
In order to make room for this biotech pick and another top communications stock, we had to remove a consulting firm and a railroad stock from our list this week.
You can check out the Best Dividend Stocks Model Portfolio to explore all the stocks.
