Time to Panic About Pfizer's Upcoming Patent Expirations?

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Many investors are attracted to Pfizer , Merck, and Johnson & Johnson -- the only pharmaceutical companies in the Dow Jones Industrial Average -- for their robust dividends. The cash these companies generate, however, is largely dependent on patent protection for the companies' branded pharmaceutical products. When patents expire, revenue quickly erodes in the face of generic competition.

Pfizer is still dealing with the patent expiration of its megablockbuster drug Lipitor, but are there additional expirations looming in the near future? And how does Pfizer compare with peer Eli Lilly ? In the following video, taken from the Motley Fool's health care show Market Checkup, analysts David Williamson and Max Macaluso discuss these topics in detail.

One of the best parts of owning big pharma stocks is their attractive dividends, but smart investors know the importance of diversifying -- seeking high-yielding stocks from multiple industries. The Motley Fool's special free report "Secure Your Future With 9 Rock-Solid Dividend Stocks" outlines the Fool's favorite dependable dividend-paying stocks across all sectors. Grab your free copy by clicking here.


The article Time to Panic About Pfizer's Upcoming Patent Expirations? originally appeared on Fool.com.

David Williamson owns shares of Pfizer. Max Macaluso, Ph.D., has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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