Patent protection. It’s the lifeblood of the pharmaceutical industry. Those exclusivity rights to drugs and therapies are what helps drive profits, cash flows and, ultimately, their dividends. So, when those patents start to expire, it can become a serious issue for investors. Billions of dollars’ worth of cash flows can evaporate in a matter of seconds, but that hasn’t been the case for our Best Dividend Stocks List pick in the healthcare sector.
Our selection is one of the largest pharmaceutical firms on the planet and has been designing new drugs and therapies for decades. This has continued to this day. Thanks to smart M&A and top-notch science, our pick has managed to completely refresh its portfolio of blockbuster drugs and avoid the dreaded “patent cliff.” With new high-margined cancer and diabetes drugs filling its portfolio, our pick is poised to keep the growth coming for a long time. Its latest quarterly results are a testament to the power of its portfolio.
But our pick isn’t done yet.
Check out our original pick here.
The firm still features a rich development pipeline chock-full of additional cancer medicines, gene therapy potential and non-opioid pain medicines to keep the refresh cycle going for years to come. Adding in the overall rise in healthcare demand and you have a recipe for dividend success. For investors, our pick continues to be a top-notch winner in the sector.
To summarize, here are five reasons why you should own this stock:
- One of the world’s largest pharma companies, with clinical operations conducted in more than 55 countries and drugs sold in more than 120.
- New drugs continue to drive revenues and replace older off-patent blockbuster medicines.
- Recorded a 3% jump in revenues for the second quarter of 2019 with more than 40% of those revenues driven by new drugs with long patent protection runways.
- Increased its dividend 15% at the start of the year and bought back more than $3.5 billion worth of stock during the quarter.
- Healthy payout ratio of 47% and increasing yield of 2.29%.
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