3 Dividend-Paying Pharmaceutical Stocks to Buy This Summer

NYSE: PFE | Pfizer Inc. News, Ratings, and Charts

PFE – In addition to the ongoing COVID-19 public health crisis, an increasing focus on treating other critical diseases should continue driving the growth of the pharmaceutical industry. So, based on that, we think it is wise to bet on established pharmaceutical companies Pfizer (PFE), AbbVie (ABBV), and Eli Lilly (LLY) that also pay dividends. In addition to generating solid capital gains, these stocks’ dividend streams could help investors hedge their portfolios against current market volatility. Read on.

The pharmaceutical industry has benefited from much investor attention amid the COVID-19 pandemic. And pharma companies worldwide are now ramping up their research and development efforts to provide more and better healthcare solutions.

Investors’ interest in pharmaceutical stocks is evident in Invesco Dynamic Pharmaceuticals ETF’s (PJP) and iShares U.S. Pharmaceuticals ETF’s (IHE) 20.4% and 15.7% returns, respectively, over the past year. With consistent product innovations and a growing need for critical-disease therapies, the industry is expected to keep growing in the near- to midterm. According to a Fortune Business Insights report, the pharmaceutical market is expected to hit $2.2 trillion in aggregate sales by 2027.

In addition to holding solid growth prospects, pharmaceutical companies that pay dividends are lucrative buys amid current market volatility. So, we think it could be wise to bet now on dividend-paying pharma companies Pfizer Inc. (PFE), AbbVie Inc. (ABBV), and Eli Lilly and Company (LLY), which are well positioned to continue growing.

Click here to checkout our Healthcare Sector Report for 2021

Pfizer Inc. (PFE)

One of the top players in the biopharmaceutical space, PFE became almost synonymous with COVID-19 vaccine development because its vaccine candidate became the first to receive emergency use authorization (EUA) from the United States Food and Drug Administration (FDA). The company offers medicines and vaccines in various other therapeutic areas too, including cardiovascular, metabolic, and pain, under several brands, which include the Eliquis, Chantix/Champix, and Premarin family brands.

PFE  has declared a $0.39 quarterly dividend per share, payable on June 4, 2021. PFE’s dividend pay-outs have grown at a 5.8% CAGR over the past five years and 5.3% over the past three years. While its four-year average dividend yield is 3.8%, its current dividend translates to a 4.02% yield.

PFE’s revenue increased 44.6% year-over-year to $14.60 billion for the quarter ended March 31, 2021. The company’s net income came in at $4.90 billion, which represents a 45.4% increase from the same period last year. Its adjusted EPS was  $0.93, up 47.6% from the year-ago value.

Analysts expect PFE’s EPS and revenue to increase 43.1% and 63%, respectively, year-over-year to $1.03 and $19.77 billion for the quarter ending September 30, 2021. It surpassed consensus EPS estimates in three of the trailing four quarters.

Last month, Myovant Sciences Ltd. (MYOV) and PFE announced that the U.S. FDA had approved MYFEMBREE, the first once-daily treatment for the management of heavy menstrual bleeding associated with uterine fibroids in premenopausal women. This is expected to boost the company’s revenues. The stock has gained 15.8% over the past three months to close yesterday’s trading session at $38.79.

PFE’s bright prospects are also apparent in its POWR Ratings. The stock has an overall A rating, which equates to Strong Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.

It has a B grade for Value, Quality, Stability and Growth. Click here to see the additional POWR ratings for PFE (Momentum and Sentiment). PFE is ranked #5 of 230 stocks in the Medical-Pharmaceuticals industry.

AbbVie Inc. (ABBV)

Research-based biopharmaceutical company ABBV develops and sells pharmaceutical products worldwide. Its products are focused on treating conditions such as chronic autoimmune diseases in rheumatology, gastroenterology, and dermatology.

ABBV’s dividend pay-outs have grown at an 18.1% CAGR  over the past five years and 19.1% over the past three years. While its four-year average dividend yield is 4.4%, its current dividend translates to a 4.67% yield. It paid a $1.30 quarterly dividend on May 14, 2021.

The company’s revenue increased 50.9% year-over-year to $13.01 billion for the first quarter, ended March 31, 2021. ABBV’s net income was $3.55 billion, which represents an 18% year-over-year increase. Its adjusted EPS came in at $2.95, up 21.9% from the same period last year.

ABBV’s EPS is expected to increase 31.6% year-over-year to $3.08 for the current quarter, ending June 30, 2021. It surpassed the Street’s EPS estimates in each  of the trailing four quarters. Analysts expect its revenue to increase 34.9% year-over-year to $13.60 billion in the current quarter.

This month, ABBV announced positive top-line results from the Phase 3 maintenance study of FORTIFY, showing that risankizumab 360 mg achieved the co-primary endpoints of endoscopic response and clinical remission at one year in adult patients with moderate to severe Crohn’s disease. This result could be a gamechanger for ABBV if the drug’s usage is approved. The stock has gained 18.6% over the past nine months to close yesterday’s trading session at $111.40.

ABBV’s POWR Ratings are consistent with this promising outlook. The stock has an overall B rating, which equates to Buy in our proprietary rating system. It has a B grade for Growth, Value and Quality. Click here to see ABBV’s ratings for Stability, Sentiment and Momentum as well. ABBV is ranked #10 in the same industry.

Eli Lilly and Company (LLY)

LLY is a drug manufacturing company that is engaged in the discovery, development, manufacturing, and marketing of products in the human pharmaceutical product segment. Its products include Diabetes and other endocrinology products, such as Baqsimi, Basaglar, Forteo, and Humalog.

The company declared an $0.85 quarterly dividend per share payable on June 10. LLY’s dividend pay-outs have grown at a 9.5% CAGR over the past five years and 13.7% over the past three years. While its four-year average dividend yield is 2.2%, its current dividend translates to a 1.71% yield.

LLY’s revenue increased 16.1% year-over-year to $6.81 billion for the first quarter, ended March 31. The company’s non-GAAP net income came in at $1.70 billion, which represents a 15.7% year-over-year rise. Its EPS was $1.87, up 16.1% from its  year-ago value.

For the quarter ending September 30, 2021, analysts expect LLY’s EPS and revenue to increase 22.7% and 15.3%, respectively,  to $1.89 and $6.62 billion. It surpassed  consensus EPS estimates in three of the trailing four quarters.

The company announced on May 22 that in a pre-specified analysis of the Phase 2 SERENITY study, its product mirikizumab improved fatigue in patients with moderately to severely active Crohn’s disease (CD). The stock has soared 29.4% over the past year to close yesterday’s trading session at $199.13.

LLY has a B overall rating, which translates to Buy in our proprietary rating system. It has a B grade for Quality, Value and Stability. In addition to the POWR Ratings grades we’ve just highlighted, we’ve also rated it for Growth, Sentiment and Momentum. Click here to see all LLY ratings. LLY is ranked #12 in the same industry.

Click here to checkout our Healthcare Sector Report for 2021


PFE shares were trading at $38.83 per share on Thursday afternoon, up $0.04 (+0.10%). Year-to-date, PFE has gained 7.69%, versus a 12.50% rise in the benchmark S&P 500 index during the same period.


About the Author: Ananyo Guha Niyogi


Ananyo’s ardent interest in capital markets, wealth management, and financial regulatory issues, led him to a career as an investment analyst. His goal is to educate individual investors by making complex financial issues easy to understand. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
PFEGet RatingGet RatingGet Rating
ABBVGet RatingGet RatingGet Rating
LLYGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


:  |  News, Ratings, and Charts

Recession is Here...Watch Out Below!

More and more it looks like recession is here. This includes a dramatic decline for ISM Manufacturing discovered this morning. As you likely know, most economist call manufacturing the "canary in the coal mine" for the US economy as it often shows weakness before other areas. In fact, GDP Now from the Atlanta Fed reads it loud and clear with a negative revision for the US economy down to -2.1% for Q2. Ouch! We are going to discuss these new economic facts...what it means for the stock market outlook...and an interesting view on why the S&P 500 (SPY) does not decline in orderly fashion. All that and more is coming your way in this week's commentary…

:  |  News, Ratings, and Charts

4 Ideal Stocks to Add to Your Portfolio in July

While sluggish consumer spending data led to the stock market ending the last trading session of June in the red, a moderate inflation forecast is nurturing hopes over the economy to avoid a recession. Therefore, investors might consider buying quality stocks ARC Document Solutions (ARC), Core Molding Technologies (CMT), DLH Holdings (DLHC), and Friedman Industries (FRD) at their current low price levels to benefit from their big rebounds. Read more…

:  |  News, Ratings, and Charts

Stocks to Fall MUCH FURTHER this Bear Market Cycle

Spoiler alert...the bear market is not over. Unfortunately history shows that the S&P 500 (SPY) has much further to fall to squeeze out excess valuation. That is just a natural part of the bear market process that is properly explained in this timely market commentary. More importantly, this commentary provides a strategy on how to profit in the days and weeks ahead as the market finds its way to bottom. Read on below for more...

:  |  News, Ratings, and Charts

Wall Street Analysts Predict More Than 160% Upside in These Stocks

The high global inflation and hawkish federal reserve are leading to heightened volatility in the market. However, despite the market uncertainties, Wall Street analysts see a more than 160% upside potential in IonQ (IONQ) and Rigetti Computing (RGTI). Thus, these stocks could be ideal additions to your watchlist. Keep reading…

:  |  News, Ratings, and Charts

Stocks to Fall MUCH FURTHER this Bear Market Cycle

Spoiler alert...the bear market is not over. Unfortunately history shows that the S&P 500 (SPY) has much further to fall to squeeze out excess valuation. That is just a natural part of the bear market process that is properly explained in this timely market commentary. More importantly, this commentary provides a strategy on how to profit in the days and weeks ahead as the market finds its way to bottom. Read on below for more...

Read More Stories

More Pfizer Inc. (PFE) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All PFE News