Ten Highest Yielding Pharma Stocks

Investors turn to the large drug company stocks for several reasons. They are considered recession proof, they are a play on the aging 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%, P/E's below 20, and PEGs below three:

• 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 P/E 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 P/E 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 P/E 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 P/E 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 P/E 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 P/E 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 P/E of 9.6 and a PEG of 2.48.
• Roche Holding Ltd. (RHHBY.PK) - Its drugs include Xenical, Valium, Zenapax, Valcyte, Bactrim, Tarceva, CellCept, and Boniva. The stock yields 3.3%, it has a P/E 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 P/E of 16.0 and a PEG of 2.34.
• Johnson & Johnson (JNJ) - Its drugs include RISPERDAL, INVEGA, REMICADE, PROCRIT, TOPAMAX, LEVAQUIN and FLOXIN. The company's 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 P/E of 14.4 and a PEG of 1.65.

Disclosure: Author owns PFE and BAYRY.PK.

Comments

[livesinhiscar:]

I hate drug stocks.
If they come up with a good drug, copycats and generics will eventually destroy the benefit.
If they come up with a stinker, they get sued by thousands of people.

2008 Oct 20 04:53 PM

[Jake2:]

User 197175: Take two aspirin and call me in the morning.

2008 Oct 20 06:06 PM

[notsosmart:]

great jake2

2008 Oct 21 05:19 PM

[Bingo 2:]

197175 has said it all- The good ones get stolen and the bad ones go to court. Why don't we extend patent rights to the inventor of each product and protect them for 25 years; that way they do not have to charge as much for each dose to recover costs and they will be assured of a long term profit. Again our government wandering around in the dark!

2008 Oct 22 12:50 PM