In this article, we will take a look at some of the best dividend stocks in the pharma sector.

The US pharmaceutical industry has undergone notable shifts in recent years, influenced by factors such as the COVID-19 pandemic, expanded collaborations across the value chain, and ongoing changes in regulatory policies. In the first half of 2025, deal activity in the pharmaceutical and life sciences (PLS) space held steady, though with a cautious tone. Most transactions were targeted, strategic acquisitions falling within the $1–$5 billion range, according to a report by PwC. However, growing regulatory uncertainty and pressure from multiple oversight bodies have dampened confidence among dealmakers.

These developments have made revenue forecasting and valuation more complex, prompting many companies to take a more deliberate approach in reviewing pipeline projects and aligning strategic goals before moving forward with new deals.

Overall, the healthcare sector has consistently attracted investors, largely due to its strong track record of rewarding shareholders. As highlighted in a report by Janus Henderson, the global Healthcare & Pharmaceuticals industry recorded an underlying dividend growth of 3.2%. In 2024 alone, the sector distributed $138.1 billion in dividends to shareholders, marking a notable increase from the $101.5 billion paid out in 2018. Given this, we will take a look at some of the best dividend stocks in the pharma sector.

Our Methodology

In this article, we reviewed Insider Monkey’s Q1 2025 database to identify pharmaceutical dividend stocks that hedge funds favored the most. The companies listed below are ranked in ascending order based on the number of hedge fund holders in each firm.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

14. AstraZeneca PLC (NASDAQ:AZN)

Number of Hedge Fund Holders: 56

AstraZeneca PLC (NASDAQ:AZN) has a strong lineup of drugs in development, which should help it navigate upcoming patent expirations. By the end of the first quarter, it had secured around 13 drug approvals or label updates. Among its most promising experimental treatments are two potential weight management drugs, AZD5004 and AZD6234. Overall, the company is working on nearly 200 programs in its research pipeline.

In the first quarter of 2025, AstraZeneca PLC (NASDAQ:AZN) reported revenue of $13.6 billion, which showed a 7% growth from the same period last year. Total revenue has grown across all key regions, with core operating profit rising by 12%. The company is also planning to ramp up its investment in manufacturing and research in the U.S., building on its major R&D centers in Gaithersburg, Maryland, and Cambridge, Massachusetts. Overall, it is steadily moving closer to its goal of reaching $80 billion in total revenue by 2030.

AstraZeneca PLC (NASDAQ:AZN) currently pays an interim dividend of $1.03 per share and has a dividend yield of 2.25%, as of July 17. It is one of the best dividend stocks in the pharma sector as the company has been paying regular dividends to shareholders for the past 32 years.

13. Bristol-Myers Squibb Company (NYSE:BMY)

Number of Hedge Fund Holders: 69

Bristol-Myers Squibb Company (NYSE:BMY) is among the best dividend stocks in the pharma sector. The company has dealt with some hurdles in the past, but it has secured several key new drug approvals in recent years. One of the most notable is Reblozyl, a treatment for anemia in individuals with beta-thalassemia, a rare blood disorder. In the first quarter, Reblozyl generated $478 million in sales, marking a 35% increase compared to the same period last year.

Bristol-Myers Squibb Company (NYSE:BMY)’s revenue for the year came in at $11.2 billion, which, though, fell by 5.6% from the same period last year, beat analysts’ estimates by $494.6 million. The company’s cash position also remained strong, with cash and cash equivalents of $10.9 billion, up from $10.34 billion at the end of December 2024.

Bristol-Myers Squibb Company (NYSE:BMY) has raised its full-year revenue forecast from around $45.5 billion to a new range of about $45.8 billion to $46.8 billion. This upward revision reflects strong results from its Growth Portfolio, stronger-than-anticipated Legacy Portfolio sales in the first quarter of 2025, and a positive foreign exchange impact of roughly $500 million.

Bristol-Myers Squibb Company (NYSE:BMY) offers a quarterly dividend of $0.62 per share and has a dividend yield of 5.18%, as of July 17. The company has been rewarding its shareholders with growing dividends for the past 16 years.

12. Amgen Inc. (NASDAQ:AMGN)

Number of Hedge Fund Holders: 69

Amgen Inc. (NASDAQ:AMGN) is one of the best dividend stocks in the pharma sector. In 2023, the company finalized its $28 billion acquisition of Horizon Therapeutics, a smaller biotech firm. This move helped broaden Amgen’s product portfolio and reduced its reliance on older drugs like Enbrel, which are expected to weigh on future revenue and profit growth. The acquisition also brought in new growth opportunities, especially with Tepezza, the first FDA-approved treatment for thyroid eye disease.

In the first quarter of 2025, Amgen Inc. (NASDAQ:AMGN) reported revenue of $8.15 billion, which showed a 9.4% growth from the same period last year. The company reported strong global demand for its products in the first quarter. Management expressed confidence in its long-term growth outlook, citing continued success with new product launches and positive Phase 3 trial results for several treatments.

Amgen Inc. (NASDAQ:AMGN)’s free cash flow for the quarter came in at $1.0 billion, up from $0.5 billion in the prior year period. Its operating cash flow was $1.4 billion, compared to $0.7 billion in the same period last year. The company also returned $1.3 billion to shareholders through dividends during the quarter. Currently, it offers a quarterly dividend of $2.38 per share and has a dividend yield of 3.19%, as of July 17. The company has raised its payouts since the inception of its dividend policy in 2011.