Is AstraZeneca's Dividend Unbeatable?
Editor's Note: At 0:33, Fool contributor Dan Carroll intended to note that AstraZeneca's 64% cash payout ratio leaves the company adequate cash to sustain its dividend. The Fool regrets the error.
Big pharma's home to some of the best high-yield dividends on the market, and British drugmaker AstraZeneca's no exception. This stock's 4.7% yield is a big draw for income investors honing in on the long run, but that's not all that's lifted eyebrows around this pick as of late. Pfizer's circling AstraZeneca in its acquisition aims, but while all eyes are on these two competitors squaring off over the buyout dance, is Astra's dividend worth it for investors?
The company's seen sales take a beating as of late, with generic competition pressuring the firm's revenue. AstraZeneca's earnings slipped in its most recent earnings report, and more pain could be on the way. The drugmaker's highly successful blockbuster therapy Nexium loses patent protection this month, while fellow blockbuster Crestor will see patent exclusivity fall away in 2016.
Can AstraZeneca beef up its pipeline and bring in new sales to replace its patent losses and keep its high dividend on course? Find out in the video below, as Motley Fool contributor Dan Carroll takes you through everything you need to know about this high-yielding big pharma stock -- and whether AstraZeneca's on pace for a brighter future.
Don't miss out on the best dividend stocks for the next decade
The smartest investors know that dividend stocks simply crush their non-dividend paying counterparts over the long term. That's beyond dispute. They also know that a well-constructed dividend portfolio creates wealth steadily, while still allowing you to sleep like a baby. Knowing how valuable such a portfolio might be, our top analysts put together a report on a group of high-yielding stocks that should be in any income investor's portfolio. To see our free report on these stocks, just click here now.
The article Is AstraZeneca's Dividend Unbeatable? originally appeared on Fool.com.Dan Carroll 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 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.