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AstraZeneca plc (ADR) (AZN), GlaxoSmithKline plc (ADR) (GSK): A Big Pharma Company With a Juicy Dividend Yield and Low Valuation

This product is the result of the collaboration between GlaxoSmithKline plc (ADR) (NYSE:GSK) and Theravance Inc (NASDAQ:THRX). According to the company, BREO ELLIPTA supports patients to breathe and minimize the risk of exacerbations. Looking forward, GlaxoSmithKline plc (ADR) (NYSE:GSK) estimates that it could grow its core EPS by 3%-4% CER (constant exchange rate).

Novartis AG (ADR) (NYSE:NVS), at $72.80 per share, is worth more than $178.8 billion on the market. The market values Novartis the most expensively at 13.45 times its forward earnings. Novartis AG (ADR) (NYSE:NVS) also has been seeking FDA approval for its once-daily COPD products. Several studieshave suggested the strength of Novartis AG (ADR) (NYSE:NVS)’ COPD products, including improving patients’ lung function and less exacerbation.

Tim Wright, the head of development commented: “The expanding Novartis COPD portfolio brings us another step closer to meeting the unmet needs of millions of patients worldwide.” For the full year 2013, Novartis AG (ADR) (NYSE:NVS) expects that its net revenue would be in line with 2012 CER, even after including $3.5 billion from generic competition. Its CER core operating income was estimated to decline in mid-single digits in 2013.

AstraZeneca pays investors the juiciest dividend yield of as high has 7.5%. GlaxoSmithKline plc (ADR) (NYSE:GSK) ranks second with 4.2% dividend yield, while the dividend yield of Novartis AG (ADR) (NYSE:NVS) is around 3.5%.

My Foolish take

AstraZeneca, under new leadership, should deliver decent operating results after its business restructure. With the juiciest dividend yield and the relatively lowest valuation, AstraZeneca seems to be a decent buy for long-term investors.

Anh HOANG has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Anh is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

The article A Big Pharma Company With a Juicy Dividend Yield and Low Valuation originally appeared on is written by Anh HOANG.

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