Thursday, July 28, 2011

High Yield Birth Control Stocks

An Institute of Medicine medical advisory panel recently recommended to the Health and Human Services Department that contraception should qualify as preventive care. Since insurers must fully cover the cost of preventative care under the new health care law, then everyone would have access to free birth control. No decision has been made yet by the Obama administration.

Income investors who believe that birth control is a growing business have plenty of dividend paying stocks to choose from. Here are some companies involved in birth control, some in a small way, some in a large way.

Merck (MRK) is the manufacturer of the NuvaRing, a combined hormonal contraceptive vaginal ring available by prescription and Implanon, a single-rod long acting reversible hormonal contraceptive birth control subdermal implant that is inserted just under the skin of the upper arm. The stock has a nice yield of 4.2%, and a forward PE of 9.1.

Pfizer Incorporated (PFE) makes Depo-Provera Contraceptive Injection which is injected every 3 months. The company also market birth control pills. The stock carries a CD beating 4.0% yield with a forward PE of 8.5.

Johnson & Johnson (JNJ) owns Ortho-McNeil Pharmaceutical, which makes diaphragms, and the combined oral contraceptive pill brands Ortho Tri-cyclen and Ortho-Evra. It trades at 12.3 times forward earnings and provides a yield of 3.4%.

Teva Pharmaceutical Industries Ltd. (TEVA) produces various pharmaceuticals including women's health care products, oral contraceptives, and intrauterine contraception. The company owns Barr Pharmaceuticals, Inc., which owns Duramed Pharmaceuticals, Inc., which makes the ParaGard T-380A, a copper-T IUD, the only copper-containing intrauterine device approved for use in the U.S. The stock trades at 8.3 times forward earnings and pays a yield of 1.7%.

Church & Dwight Co., Inc. (CHD), producer of household, personal care, and specialty products, is probably most known for it Arm & Hammer baking soda product. The company makes and markets the Trojan brands of prophylactics. In addition to condoms, it also produces home pregnancy kits. The stock sports a forward price to earnings ratio of 16.9, with a 0.8% yield.

To see all the companies involved in the production of contraception and birth control, go to, to access the free down-loadable list.

Disclosure: Author owns PFE.


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