If there were an official hierarchy of qualities that dividend seekers should take into account before they invest in a share, the underlying company of a company would almost certainly prevent its return. However, the two do not exclude. Some excellent, very profitable companies both offer a higher than average return And A company that can maintain a dividend program for a long time.
Such companies can be wonderful options for income -seeking investments. If you are on the market for that combination, let’s look at two health care companies that fit the account: Bristol Myers Squibb (NYSE: BMY) And Novartis (NYSE: NVS).
Bristol Myers Squibb is a leading drugstore with a large portfolio with medicines, with more than half a dozen, each of whom generates more than $ 1 billion in annual turnover. Although the company is primarily prominent in the oncology market, the Line -Up -up contains medicines in various other therapeutic areas, including immunology and rare diseases.
The company recently went through a period of slow sales growth after an important patent cliff, but the company has been reflected since then. In the third quarter, the top line of the drug maker rose by a healthy 8% year to year to $ 11.9 billion.
Some of the older products are still performing well. That list contains anticoagulant Eliquis, whose turnover has risen by 11% for the period year after year to $ 3 billion. However, the drug maker has a portfolio of newer medicines that slowly but surely have a greater impact on the financial results of the company.
Perhaps the most promising is Reblozyl, a drug used to treat anemia in patients with beta-nhalassemia. In the third quarter, Reblosyl’s turnover was $ 447 million, 80% higher than the period from a year ago. Reblosyl was first approved in the US in 2019 and should help stimulate top growth for many years to come.
These and other newer products should help Bristol Myers Squibb overcome more upcoming patent cliffs, including those for Eliquis, who should be out of exclusivity towards the end of the decade. It will be a huge loss, but the company shows that it can take on these challenges. Many of his newer products earn label extensions. The company will also launch more brand new medicines, so that it can continue to deliver strong financial results and maintain its dividend program.
The forward yield of the shares is approximately 4.2% compare with the S&P 500‘s 1.3% – while the company has increased its payouts by slightly less than 38% over the past five years. Bristol Myers Squibb may not be the most flashiest shares on the market, but it is a good choice for Dividend investors.