As a leading generic pharmaceuticals company, Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA) usually benefits when top selling branded drugs lose patent protection. But the company also sells numerous branded drugs, and it's facing a patent expiration in 2015 for Copaxone, which accounted for around 20% of sales in 2012.
Fewer generic drugs to copy, as well as Copaxone's patent loss, will certainly hurt revenue growth over the next few years. Despite the sluggish growth outlook, given the company's reasonable payout ratio today and the stability offered by its generic business, I think Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA) will be able to maintain, and grow, its dividend slightly over the next few years.
The article Does Teva's Dividend Have Room to Soar? originally appeared on Fool.com and is written by Brenton Flynn.
Brenton Flynn has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.
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