January 30, 2017

Johnson & Johnson Too Rich For You? Try This High-Yielding Pharma Stock Instead


Johnson & Johnson and Pfizer are both high-quality pharma blue chips with strong track records of dividend growth and market beating returns.

And while JNJ has the superior business fundementals, in the short to medium term, Pfizer has the stronger growth runway, which will likely make for superior total returns.

In addition, Pfizer is currently trading at a far more appealing valuation, making it the superior dividend stock to buy right now.

That being said, investors looking to add to existing positions in either stock should probably wait for a correction.

As well as keep in mind the big risks facing both pharma giants.

Big pharma stocks like Johnson & Johnson (NYSE:JNJ) and Pfizer (NYSE:PFE) have long been favorites of dividend growth investors and for good reason. Their recession resistant business models and steady cash flows allow for generous, secure, and steadily growing payouts that generally result in solid market beating long-term performance.


Source: Seeking Alpha

1 comment:

  1. Personally, I'm in pfizer and this is one of the few in my list that were purchased at the exact right time. So now, I'm in doubt: sell or keep for dividends... :)

    Well written! keep up the good work.

    ReplyDelete