Sunday, October 19, 2008

Highest Yielding Big Pharma Stocks

Investors turn to the large drug company stocks for several reasons. They are considered recession proof, they are a play on the ageing of the baby boomers, and they are often considered safer and less volatile than most other stocks. Since dividends are so vital to many investors they days, the high yielding big pharmas are of interest. All of the following have yields over 2.5%, PE's below 20, and PEGs below 3.

Pfizer Inc. (PFE) Its drugs include Lipitor, Norvasc Caduet, Chantix/Champix, Lyrica, Geodon/Zeldox, Aricept, Zoloft, Celebrex, Vfend, Zyvox, Viagra, Detrol, and Zyrtec, and for animals; Clavamox/Synulox, RespiSureOne/StellamuneOne, Bovi-Shield Gold, Dectomax, and Draxxin. The stock yields 7.5% It has a PE of 12.7 and a PEG of 2.12 .

Bristol Myers Squibb Co. (BMY) Its drugs include PLAVIX, AVAPRO/AVALIDE, PRAVACHOL, COUMADIN, REYATAZ, SUSTIVA, BARACLUDE, ERBITUX, TAXOL, SPRYCEL, IXEMPRA, ABILIFY, ORENCIA, and EFFERALGAN. The stock yields 7.2% It has a PE of 16.3 and a PEG of 1.54 .

GlaxoSmithKline plc (GSK) Its drugs include Seretide/Advair, Avandia, Lamictal, Wellbutrin, Zofran, Valtrex, Coreg, Imigran/Imitrex, Augmentin, Seroxat/Paxil, and Flixotide/Flovent. The stock yields 5.5% It has a PE of 11.9 and a PEG of 1.99 .

Eli Lilly & Co. (LLY) Its drugs include Zyprexa, Cymbalta, Strattera, Prozac, Symbyax, Humalog, Actos, Byetta, Evista, Forteo, Gemzar, Alimta and Cialis. The stock yields 5.5% It has a PE of 9.9 and a PEG of 1.39 .

Merck & Co., Inc. (MRK) Its drugs include Singulair, Cozaar, Hyzaar, Vasotec, and Vaseretic, Fosamax, Zocor, Cosopt, Trusopt, Primaxin, Cancidas, Januvia, Maxalt, and Proscar. The stock yields 5.4% It has a PE of 12.4 and a PEG of 2.48 .

Bayer AG (BAYRY.PK) Its drugs include the famous Bayer aspirin. The stock yields 3.8% It has a PE of 13.2 and a PEG of 1.26 .

Wyeth (WYE) Its drugs include neuroscience therapies, vaccines, musculoskeletal therapies, nutrition products, gastroenterology drugs, anti-infectives, oncology therapies, hemophilia treatments, and immunological products. The stock yields 3.5% It has a PE of 9.6 and a PEG of 2.48 .

Roche Holding Ltd. (RHHBY) Its drugs include Xenical, Valium, Zenapax, Valcyte, Bactrim, Tarceva, CellCept, and Boniva. The stock yields 3.3% It has a PE of 14.6 and a PEG of 1.91 .

Novartis AG (NVS) Its drugs include those for cardiovascular, metabolism, oncology, hematology, neuroscience; respiratory, infectious diseases, transplantation, immunology; ophthalmics, dermatology, gastrointestinal, urinary, arthritis and bones. The stock yields 3.2% It has a PE of 16.0 and a PEG of 2.34 .

Johnson & Johnson (JNJ) Its drugs include RISPERDAL, INVEGA, REMICADE, PROCRIT, TOPAMAX, LEVAQUIN and FLOXIN. There brands also include AVEENO, BAND-AID, CAREFREE, CLEAN & CLEAR, LISTERINE, MOTRIN IB, NEUTROGENA, RoC, PEPCID AC, REMBRANDT, SPLENDA, STAYFREE, SUDAFED, and TYLENOL. The stock yields 2.9% It has a PE of 14.4 and a PEG of 1.65 .

If you like high yield stocks, you should check out Top Yielding Debt Free Stocks, and Highest Yielding Electric Utilities. And if you like monthly dividend stocks, check out the list at

Author owns PFE and BAYRY.PK.


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