As the market continues to climb, investors are beginning to see thinning dividend yields on many of their big pharma shares. But by sticking with quality – and with companies that are keeping their product pipelines full with new drugs – one can certainly find the key to not just share growth but also a nice steady income along the way.
Keeping yields healthy
One of the higher yielding big pharmaceutical companies, GlaxoSmithKline plc (ADR) (NYSE:GSK), operates through three primary segments: consumer health care, vaccines, and pharmaceuticals. This UK-based powerhouse has continued to expand into emerging markets – especially capitalizing on the growth that is taking place in many developing-international economies – which is a likely factor in its positive financials.
One of the biggest focus areas for GlaxoSmithKline plc (ADR) (NYSE:GSK) has been with its GLP-1 agonists. This medication for patients who are suffering from diabetes claims to offer less risk to its users than some of the other related types of medication that are currently available on the market today. GlaxoSmithKline plc (ADR) (NYSE:GSK) has also recently gained acceptance by the U.S. FDA for its fluticasone furoate, a COPD, or Chronic Obstructive Pulmonary Disease-management drug application.
Although analysts expect GlaxoSmithKline plc (ADR) (NYSE:GSK)’s share price to rise by only 3% over the next 12 months, the $2.76 per share dividend payout is yielding investors approximately 6% annually.
In keeping with healthy dividend yields, investors may also want to consider Eli Lilly & Co. (NYSE:LLY). Here, too, is a big pharma company that focuses on the development, manufacturing, and sale of drugs for both humans and animals. The span of Eli Lilly & Co. (NYSE:LLY)’s market encompasses the U.S. and roughly 130 additional countries.
This company also has a strong presence in the diabetes-management area with its investigational med Dulaglutide. Other medications that Eli Lilly & Co. (NYSE:LLY) currently has in clinical testing include a depression drug called Edivoxetine and a new insulin glargine product.
Eli Lilly & Co. (NYSE:LLY)’s recent announcement about an agreement it has entered into with Qiagen has been well received in the industry and by investors. This program will work in the area of development and commercialization of companion diagnostics with drugs across numerous therapeutic areas using both investigational meds and those that have already been approved for use.