If there’s one pervasive problem with many of the healthcare giants, it’s the so-called patent cliff. With many blockbuster drugs and therapies falling off patent protection, their hefty cash flows and earnings are at risk of also falling by the wayside. But that’s not the case for our Best Dividend Stock List’s global healthcare pick.
It’s been smartly using its cash flows and healthy balance on a solid dose of biotech innovation as well as smart bolt-on M&A deals.
This has refreshed its patent portfolio and allowed our pick to steer clear of the impending patent cliff. Perhaps, more importantly, its given investors more avenues for long-term growth down the road.
See our original article on our pick here.
Perhaps the best part is that these efforts to find new growth will continue to keep our pick’s dividend moving along. Already considered a Dividend Aristocrat, our pick has paid dividends for over 50 years. With higher cash flows produced from these new drugs, it should be able to pay investors for another 50.
To summarize, here are five reasons why you should own this stock:
- Dividend Aristocrat that has raised its dividend for 55 years in a row.
- Massive patent portfolio of drugs that has only gotten bigger through smart biotech M&A.
- Generated more than $15.5 billion in free cash flows last year alone.
- Operations in more than 80 countries and global leader in seven consumer healthcare categories.
- Low payout ratio of 46% and growing yield of 2.38%.
