Transition to Safer Stocks: Will Big Pharmaceuticals Make You Financially Healthy

Have you noticed in the last several days of this volatile market, when many of the mid cap and small cap stocks were tanking, the blue chip stocks, such as AT&T (T) and Merck (MRK) went up? Investors are getting worried and nervous, and when that happens, they move their money cash and more conservative stocks, generally stocks that pay dividends. The dividends help to reduce volatility and return the investment capital back faster.

Two years ago, I suggested big pharmaceutical stocks as a contrarian play as big pharma stocks were down almost 2% during the first few months of 2012, whereas the S & P 500 was up about 9% during that same time frame. The suggestions included Johnson &  Johnson (JNJ), which has risen by almost 50% in the last couple years, and Merck (MRK), which has gone up by about 44%, both far outperforming the S & P 500, which went up around 31%.

These pharmaceutical stocks are still worth a second look, especially for long term investors. According to the free list of high yield big pharmaceutical stocks at WallStreetNewsNetwork.com, there over a dozen pharmaceutical stocks and more than half with yields of 3.0% or more. 

Merck (MRK), is one of the largest pharmaceutical companies in the world. This is the company that makes such products as Gardasil, Singular, Levitra, Nasonex, Claritin, Clarinex, Coppertone, MiraLax, and Bain de Soleil. The stock trades at 38 times trailing earnings and 15 times forward earnings.   The stock pays a healthy yield of 3.2%.

Johnson &  Johnson (JNJ), founded in 1886, is considered to be the world's largest pharma company. It is a manufacturer of pharmaceutical, medical devices and consumer packaged goods. Products include Band-Aids, Acuvue, Listerine, OneTouch Blood Glucose Meter, Splenda, and Tylenol. The stock has a trailing price to earnings ratio of 20 and a forward PE ratio of 16, with a generous yield of 2.8%.

If you want a list of over a dozen high yield pharma stocks, that can be downloaded and sorted, go to WallStreetNewsNetwork.com.

Disclosure: Author owns T.

By Stockerblog.com

Big Pharma: A High Yield Contrarian Play

If you look at the index of big pharmaceutical stocks and compare it to the Standard and Poor's 500, you will notice that pharma was down almost 2% year-to-date, whereas the S&P 500 was up about 9% from the beginning of the year. Are these companies being ignored? Are concerns about the patent expiration issues being overdone? Although several of these stocks have had risen over the last year or so, contrarians may want to take a closer look at some of them, especially due to the high yields.

The other reason for looking at dividend stocks in the health care sector is the Baby Boomer growth. This is especially true for long term investors. Based on the free list of high yield big pharmaceutical stocks at WallStreetNewsNetwork.com, there are ten pharmaceutical stocks with yields of 4.0% or more, with two stocks paying more than 5%. One example is GlaxoSmithKline plc (GSK), the third largest pharmaceutical company in the world by revenues, after Johnson & Johnson (JNJ) and Pfizer (PFE). Glaxo's products include Aquafresh, Boniva, Dexedrine, Levitra, Nicoderm, Nicorette, Sensodyne, Tums, and Valtrex. The stock pays a generous yield of 5.8% payable quarterly. It trades at 11.6 times forward earnings.

Johnson & Johnson (JNJ), the world's largest pharma company, is a manufacturer of pharmaceutical, medical devices and consumer packaged goods. The company, which was founded in 1886, yields 3.6% and has a forward price to earnings ratio of 11.7.

Merck & Co., Inc. (MRK), another big pharmaceutical, yields 4.2% and trades at 10.2 times forward earnings. This is the company that makes such products as Levitra, Nasonex, Claritin, Clarinex, Coppertone, and Bain de Soleil. They even make Antivenin for the treatment of black widow spider bites.

If you want a list of over a dozen high yield pharma stocks, that can be downloaded and sorted, go to WallStreetNewsNetwork.com.

Disclosure: Author owns PFE.
By Stockerblog.com

Autism Jumps 1148% in California

Yes, that's not a typo. According to a recent report from the State of California Department of Developmental Services, "From 1987 to 2007, the number of people with ASD [Autistic Spectrum Disorders] grew 1,148 percent, significant when compared to increases of 73 percent for cerebral palsy, 66 percent for epilepsy, and 95 percent for mental retardation. During this same period, California’s general population grew 27 percent."

Fortunately, there are several publicly traded pharmaceutical companies are trying to make a difference by discovering and producing drugs for treating autism related disorders and symptoms.

Risperidal, developed and distributed by Janssen Pharmaceutica, a division of the New York Stock Exchange traded company Johnson & Johnson (JNJ), is an antipsychotic medication that is used in lower doses to treat autistic disorders and has FDA approval for use of the drug for symptomatic treatment of irritability in autistic children and teenagers, since 2006. The stock has a PE ratio of 12 and pays a yield of 3.6%.

Prozac, with the chemical name fluoxetine hydrochloride, is made by Eli Lilly and Company (LLY), also traded on the NYSE, and has been approved by the FDA for both obsessive compulsive disorder and depression in autistic children age 7 and older. The company has a forward PE of 9 and pays a yield of 5.7%.

Ritalin and the time-release drug, Concerta, is a Methylphenidate drug which, although generally used for attention deficit hyperactivity disorder, also known as ADHD, and attention-deficit disorder, or ADD, has also been prescribed for children with autism. It is produced by the company Novartis AG (NVS), the ADR of which trades on the NYSE; however, the generic version of the drug far outsells Ritalin. The stock has a PE ratio of 11 and pays a yield of 4.6%.

Duramed Pharmaceuticals, Inc., a division of Barr Pharmaceuticals, Inc., which is a subsidiary of Teva Pharmaceutical Industries Ltd. (TEVA), is a manufacturer of Adderall XR, an extended-release drug which is used to help with attention and focus problems, and behavior issues of individuals with autism. Teva has a PE of 57 and a yield of 1.1%.

Shire plc (SHPGY) makes Adderall XR, an extended-release version of the drug. The stock has a PE of 38 and a yield of 0.3%.

When I wrote about autism stocks back in 2007, I reviewed a couple autism related books which may be worth checking out. They are The Curious Incident of the Dog in the Night-Time and Born on a Blue Day: Inside the Extraordinary Mind of an Autistic Savant. For an Excel database of high yield drug stocks that can be downloaded, changed, and sorted, go to WallStreetNewsNetwork.com.

Author has a nephew who is severely autistic and does not own any of the above stocks.

By Stockerblog.com

Big Pharma Big Yields

With the Roche (RHHBY.PK) acquisition of Genentech (DNA), investors are wondering if the big pharmaceutical companies are the medicine that their portfolios need. Especially if those companies have high yields. WallStreetNewsNetwork.com recently came out with its downloadable Excel database of High Yield Big Pharma stocks, more than half of which have yields over 4%. Here are a few examples:

Novartis AG (NVS) is the Swiss based healthcare products company, which has a PE ratio of 12, and yields 4.10%.

Merck & Co., Inc. (MRK) is the New Jersey based pharma that makes Singulair, Zocor, Propecia, Proscar, Gardasil and numerous other products. They have a PE ratio of 8, and yields 5.10%.

GlaxoSmithKline plc (GSK) is the British based pharmaceutical and consumer health-related products company, which sells Advair, Advair, Zofran, Valtrex, Flovent and many other pharmaceuticals, along with many over-the-counter products. They have a PE ratio of 14, and a yield of 5.60%.

To see a list of all the big pharmas and their yields which can be downloaded, sorted, and changed, go to wsnn.com.

Author does not own any of the above.

By Stockerblog.com