Those of you who have been following Stockerblog for a long time have probably been wondering why I haven't posted any articles for a few days. I've been sick. I think I got some kind of e coli sickness from non-US tomatoes that I didn't wash very well. Or it could have been the fish I had for dinner. Anyway, I was bedridden for four days and totally wiped out. However, you aren't interested in reading about my bathroom habits. So let's get on with some stocks that can make us well.
Let's start with Pfizer (PFE), since they just increased their dividend about 10% from 29 cents per share to 32 cents per share. One of their most popular drug is Lipitor, which is used for the treatment of high cholesterol levels in the blood. Most of my friends over the age of 65 are taking Lipitor. They also have many other best selling drugs, several of which you've probably seen advertised on TV, including Norvasc for hypertension, Caduet for cardiovascular problems, Exubera, for glycemic control, Zoloft for central nervous system disorders, Aricept for Alzheimer's disease, Celebrex for arthritis, Zithromax for bacterial infections, Zyvox for bacterial infections, Detrol for overactive bladder, and Zyrtec for allergies. Of course, we can't forget Viagra for erectile dysfunction, with probably one of the best brand recognition of any drug. Pfizer has a P/E of 11 and a 4.8% yield.
Schering-Plough Corp. (SGP) is another company that just announced a dividend but didn't increase it. Schering makes a lot of products for allergy sufferers including Nasonex for nasal allergy, Afrin a nasal decongestant spray, Clarinex for allergic rhinitis, Foradil and Asmanex for asthma, Proventil for bronchospasm, Avelox for respiratory and skin infections. They also make Cipro for infections, Remicade for rheumatoid arthritis, PEG-Intron for hepatitis C, Intronn A for chronic hepatitis B and C, and CORRECTOL laxatives, along with many other products. Shering has a P/E of 21 and a yield of 0.9%.
Johnson & Johnson (JNJ), the famous Band-Aid company, is almost recession proof as people will still buy Motrin, Neutrogena, Pepcid, Splenda, Tylenol, and Listerine, whether there is a recession or not. [I used a lot of Tylenol in the last few days.] The stock has a P/E of 19 and a yield of 2.4%.
Glaxosmithkline plc (GSK) is a British drug and consumer products manufacturer. Their drugs include Advair for asthma, Avandia for diabetes, Lamictal for epilepsy and bipolar disorder, Wellbutrin, for depression, Zofran for nausea Valtrex for herpes, and Flovent, for asthma. The P/E is 14 and the yield of 4%.
Merck & Co. Inc. (MRK) has drugs which include Singulair for asthma, Vasotec for hypertension and heart failure, Fosamax for osteoporosis, and Zocor, for atherosclerosis. Merck has a P/E of 24 and a yield of 2.5%.
Novartis AG (NVS) is a Swiss based health and pharmaceutical products company, which has a P/E of 10 and a yield of 1.7%. Their Sandoz division produces generic pharmaceuticals.
Author owns PFE.
By Fred Fuld at Stockerblog.com
Fred, just to add to your Pfizer comments, Lipitor and other statins will soon become like taking aspirin. There are very few negatives to these drugs, almost like ensuring patients of "clean pipes" long term. But looking beyond the competition among drug makers are the companies that more and more frequently run their trials for them, such as Covance (CVD) and Kendle International (KNDL). Growth potential here is enormous.
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