The Best Dividend in Big Pharma: Sanofi SA (SNY), Pfizer Inc. (PFE), GlaxoSmithKline plc (GSK)

Page 1 of 2

Big pharma’s a good place to start if you’re looking for dividend stocks. Many of the largest players in the industry sport top dividends, rewarding long-term investors for their patience and faith. Separating the best big pharma stocks from the laggards can be a tricky affair given all of the drugs, businesses, and products that one major pharmaceutical company alone can offer. It’s even trickier when you’re on the lookout for income-paying stocks for the long run, given the patent cliff’s toll on big pharma and the recent spate of companies spinning off unwanted businesses.

However, a quick glance across the Atlantic reveals one steady company with its eyes on the future, a stock that income investors everywhere should love: Sanofi SA (NYSE:SNY).

Sanofi SA (ADR) (NYSE:SNY)Why Sanofi?
This French pharmaceutical giant might not be your first thought when you think of big pharma’s titans, but make no mistake: This company’s in pole position for the long haul.

Sanofi’s taken a hit lately from the patent expiration of Plavix, the company’s once-flagship blood clot drug that has since been torn down by generic competition. The drug’s still one of Sanofi’s top sellers with more than $600 million in sales in the most recent quarter, but it lost more than 6% in revenue on a constant currency basis.

Income investing is for the long term, however, and Sanofi’s got more than enough in its cabinet of drugs to fuel the future despite Plavix’s hits. Insulin medication Lantus will power Sanofi through 2015, when its patent expires; the drug is the company’s top seller, recording more than  $1.7 billion in the last quarter alone, and sales are growing at a steady double-digit clip. Although Sanofi still expects profits to fall by as much as 5% in 2013 because of generic competition — an expectation that sent shares plunging when announced — the company’s pipeline and recent moves should ease an income investor’s concern over the future.

The company’s acquisition of Genzyme back in 2011 has turned out to be a great move. With the approval of multiple sclerosis drug Aubagio last year and new rare disease treatment Kynamro fresh off its own approval, Sanofi’s riding a wave of regulatory victories. These drugs and more should help the company deal with future patent expirations such as Lantus; it’s a key factor that distinguishes Sanofi’s stability over more risky competitors like AbbVie Inc (NYSE:ABBV), which relies on one drug — Humira — to power more than half of its sales and could be crippled by its patent loss.

But are future drug sales and relief from the patent cliff Sanofi’s only distinguishing features over other big pharma dividend players? Hardly.

Separating from the pack
Sanofi might not offer the highest dividend in big pharma; its 3.6% yield only equals that of big-name rival Pfizer Inc. (NYSE:PFE), and fellow pharmaceutical giant GlaxoSmithKline plc (NYSE:GSK) offers a superior 5.1% yield. That’s a tempting pick for dividend investors on a purely financial basis.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

The 5 Most Expensive Cars To Insure in the World

The 10 Most Common Genetically Modified Foods

10 Self-Made Billionaires Who Came From Nothing

The 10 Most Expensive Cities to Live in North America

The 13 Most Expensive Headphones in the World to Represent

The Top 20 Wealthiest Soccer Teams in 2014

4 BuzzWorthy Cannabis Stocks And Some Smoking Derivative Plays

The 10 Healthiest Fast Food Chains in America to Dine At

The 5 Most Expensive Cat Food Brands You Can Spoil Your Kitty With

The 6 Best eCommerce Platforms for Small Businesses

The 10 Worst Mistakes an Entrepreneur Can Make

The 5 Most OP Characters in League of Legends to Carry Games and Crush Foes With

The 5 Best Foods to Eat Before Running that Will Help You Pound the Pavement

10 Glaring Plot Holes in The Walking Dead that a Zombie-Filled Bus Could Drive Through

The 5 Biggest Celebrity Stoners Who Love Their Reefer

The 10 Most Overrated Movies Of All Time by Out-of-Touch Critics

Top 6 Least Expensive Cruise Destinations For 2015 that Will Take You to Paradise

10 States with Lowest Substance Abuse Rates in America

The 14 Most Watched TV Finales Ever

The 10 Best Selling Role Playing Games of All Time for PC

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

Top 6 Cities For The Ultra Rich to Live in Comfort

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

How to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!