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Drug manufacturing is one of the most consistent industries as there’s always been a need for new ideas to develop drugs as well as producing the current ones. Most of the renowned manufacturers offer serious profits to investors. Here is a list of five pharmaucatical titans paying substantial dividends and priced with low P/E ratios. All of the companies pay a minimum 3% dividend yield and have have very large market caps (data derived from Finviz/Morningstar, and is current as of July 7 close):

Johnson & Johnson (NYSE:JNJ): JNJ just won approval for a new type of blood tinner. The healthcare titan has a market cap of $186 billion, and a P/E of 15.26. Forward P/E is 12.77, while earnings increased by 8.72% this year. Net profit margin was 19.77%, and the New Jersey-based company paid a 3.39% yield last year.

Although debts slightly outrun assets, it is still far from being a threat. Yields are in a good shape. JNJ is not doing bad since Feb, 2009. Gross margin is 69.4%. SMA50 is 2.45%, whereas SMA200 is 8.74%. The company had a remarkable leap in mid-April. A minor downfall is probable for the near term, but it will do just brilliant as a long pick. Recent dividend history is as follows:

May 26, 2011

$0.57

Feb 25, 2011

$0.54

Nov 26, 2010

$0.54

Aug 27, 2010

$0.54

Pfizer Inc. (NYSE:PFE): Pfizer announced a collaboration with the Russian company ChemRar to gain a strong foothold in Russia. As of July 7 close, the company owned a market cap of $160 billion. Its trailing ratio is 19.76, and forward P/E is 9.06. Earnings increased by 11.23% this quarter. The company paid a 3.86% dividend in 2010, while the profit margin was 12.56%.

Although Pfizer is not what it once used to be, it is still a healthcare titan. Debt-to assets ratio is going down for the last five quarters. Gross margin is 76.8% and SMA200 is 11.65%. Target price is 23.38, which implies an about 15% upside movement potential. Pfizer stock is rising consistently since Dec, 2011. Analysts give a 1.90 recommendation for the company (1=Buy, 5=Sell). Recent dividend yields are:

May 11, 2011

$0.20

Feb 2, 2011

$0.20

Nov 4, 2010

$0.18

Aug 4, 2010

$0.18

Abbott Laboratories (NYSE:ABT): Abbott will announce its Q2 financial results on July 20, before the market opens. With a market cap of $83.22 billion, as of July 7, the Illionis-based Abbott had a trailing ratio of 18.37, and a forward P/E of 10.71. Although it has been a rough year for Abbott, analysts estimate a 7.83% EPS growth for the next year. Profit margin is 12.29%, and dividend yield is 3.62%.

The extreme stability in dividend yield history is admirable. Debt-to assets ratio is slightly decreasing for the last four quarters. SMA50 is 1.66%, and SMA200 is 7.88%. RBC Capital suggests outperform for Abbott. I believe the company will satisfy its shareholders for a considerable time. Recent dividend history is as follows:

Apr 13, 2011

$0.48

Jan 12, 2011

$0.44

Oct 13, 2010

$0.44

Jul 13, 2010

$0.44

Bristol-Myers Squibb Co. (NYSE:BMY): BMY just agreed on expanding the market with Mylan (MYL) for its HIV drug Reyataz. The New York-based company has a $50 billion of market cap, as of July 7 close. The company is trading at a P/E ratio of 15.03, whereas forward P/E is 14.22. Earnings increased by 33.83% this quarter, and the company had an EPS growth of 9.84% this year. Paying a dividend yield of 4.53%, BMY had a a very good net profit margin in 2010.

SMA50 is 4.20%, whereas SMA200 is 11.22%. Debt-to assets ratio is decreasing for the last four years. Gross margin is 73.0%. The company seems to struggle about its dividend yields as there has not been a remarkable increase for the last ten years. Nevertheless, Bristol Myers is a stable profit-maker. Recent dividend history is:

Jun 29, 2011

$0.33

Mar 30, 2011

$0.33

Jan 5, 2011

$0.33

Sep 29, 2010

$0.32

Eli Lilly & Co. (NYSE:LLY): Fionnuala Walsh has been just appointed to LLY’s executive committee. With a market capitalization of $43.82 billion as of July 7, the Indiana-based company was trading at an admirable trailing ratio of 8.56 today. Forward P/E is 10.10, whereas the company had a 16.32% EPS growth this year. With a dividend yield of 5.20% and a profit margin of 20.82%, Eli Lilly is a charming stock for dividend lovers.

Insider transactions for the last six months have increased by 76.03%. ROA is 16.56% whereas ROE is 39.98%. Gross margin is 81.12%, and operating margin is 26.00%. Debt-to assets ratio is decreasing slightly for the last five quarters. Dividend history is relatively better, when compared to that of BMY. Although the company is facing problems since Oct,2008, I guess it will leave these woeful days soon- sooner than expected. Here are the recent dividend payments of Eli Lilly:

May 11, 2011

$0.49

Feb 11, 2011

$0.49

Nov 10, 2010

$0.49

Aug 11, 2010

$0.49

Source: 5 Pharmaceutical Titans Offering Substantial Dividends