Drug companies are often considered defensive in nature due
to their stable earnings, through good economies and bad. People with illnesses
or diseases will likely seek out treatments to improve their quality of life,
regardless of the condition of the economy.
The high cost of life saving or improving medicines means
that pharmaceutical companies often generate huge amounts of cash flow, which
allows them to pay high dividend yields. Even in a recession, many of these
companies are able to keep paying and raising dividends due to the large amount
of cash on the balance sheet.
For all these reasons, pharmaceutical stocks are strong
candidates for a dividend growth portfolio.This article examines 11 of the
largest pharmaceutical stocks in detail. All 11 stocks pay dividends, and can
be found on our list of 203
dividend-paying healthcare stocks.
The list is ranked by their total annual expected return
over the next five years. Rankings are determined by expected annual return,
based on the stock’s current yield, valuation changes, and earnings growth. All
stocks can be found in the Sure
Analysis Research Database.
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