Best Dividend Stocks: Pharmaceuticals and BioTechnology

Historically, Pharmaceuticals and Biotechnology has been one of the most unstable market segments owing to the uncertain prospects due to FDA regulations of drug approval. Most notably, startups in the sector are more susceptible to drug phase trial for their survival. The market valuation of startups has dropped to few cents a share from double digit dollar figures on FDA disapproval. More to that, there is intense competition for the same drug, even in the startup segment. Hence, to minimize the risk to which this segment is prone, it becomes necessary to shop for companies with a well-diversified portfolio.  Unfortunately, there are not many choices when it comes to select such companies. There are only a few companies with big market capitalization and drug patents for a variety of diseases. But, these companies have also been paying good dividend return over the past few years. Moreover, less of competition has made these companies acquire a high rate of growth over the past few years. Even if some serious competition from a promising startup threatens the big firms, they use their balance sheet clout to acquire the startups to eliminate competition. Because of these reasons, having some exposure to this market segment makes for a meaningful investment.

Based on my research, these are the stocks of big pharmaceutical companies paying good dividend returns.

Company name	Stock Ticker	Dividend over last 12 months*	Average annualized dividend over last 5 years*	Stock price range* (last 1 year)	Stock price range* (last 5 years)	Current stock price	Expected Payout ratio (based on recent prices)
GlaxoSmithKline	GSK	2.55	2.33	41.19-53.82	36.40-53.82	42.96	5.94%
Pfizer, inc.	PFE	1.08	0.96	27.51-35.53	17.45-35.53	35.07	3.08%
Merk & Co.	MRK	1.79	1.70	52.49-63.62	31.92-63.62	58.82	3.04%
Sanofi SA	SNY	1.61	1.66	43.31-57.42	32.22-57.42	53.60	3.00%
Novartis	NVS	2.67	2.54	84.17-106.10	57-106.10	105.81	2.52%
Amgen	AMGN	2.80	2.00	114.93-173.60	52.26-173.60	103.27	1.71%

*All amounts are in USD

Disclosure: I don’t have any position in the above mentioned stocks, and don’t plan to initiate one in the next 72 hours.