Quick Roundup of High Dividend Yield Paying Healthcare stocks – PDLI, GSK, WCRX, BMY, LLY, MRK, PFE

  on Dec 05,2012 Posted in Finance ,Investment Ideas
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Numerous investors love to watch the dividend yield, which is gauged as the yearly dividend income per share divided by the present share price.

Dividend yield calculates the amount of income got in proportion to the share price. For example, a company with lower dividend yield evaluated against other companies in similar sector shows two things; the share price is high as the market thinks the corporation has impressive prospects and is not overly worried regarding the company’s dividend payments. Secondly the corporation is in trouble and cannot afford to pay reasonable dividends.

However, at the same time a high dividend yield can show a sick company with a depressed share price. In this article we will discuss best dividend paying stocks of Healthcare sector with market volume over 2 million.

PDL BioPharma Inc (NASDAQ:PDLI) is high dividend yield paying healthcare stock with average market volume over two million and offered 7.765% dividend yield every year. The healthcare stock has the market capitalization of 1.08 billion while 139.93 million shares were outstanding. Beta factor, which measures the riskiness of the security, was booked as 0.61 while its P/E ratio was 5.64. Net profit margin of the corporation was 55.69% while operating profit margin was 93.67%.

GlaxoSmithKline plc (ADR) (NYSE:GSK) has the market capitalization of 107.43 billion. The drug giant’s annual dividend yield was booked as 5.32%. GSK has 2.46 billion shares outstanding and only 10% shares were owned by institutional investors. GlaxoSmithKline has 13.67 value in P/E ratio while price to book ratio was booked as 10.66. The company made 7.96 billion in earnings in previous 12 months while sales were 42.67 billion.

Warner Chilcott Plc (NASDAQ:WCRX) has the market capitalization of 2.89 billion while its EPS was recorded as 1.47. WCRX has 250.47 million shares outstanding while 78.10% stake was owned by institutions investors. Dividend yield per annum was 4.34% while PEG ratio was 2.19, which is relatively weak. Warner Chilcott has gross profit margin of 88.14% while net profit margin was 14.34%.

Bristol Myers Squibb Co (NYSE:BMY) was also among high dividend yield healthcare companies and offering 4.16% dividend yield per annum. The company has the market capitalization of 53.98 billion while 1.65billion shares were outstanding. The drug giant offered net profit margin of 14.87% while its gross profit margin was 74.04%. ROE was booked as 12.37%. In liquidity analysis, current ratio was 1.13 while quick ratio was 0.93.

Eli Lilly & Co (NYSE:LLY) marks the fifth rank by offering 3.98% dividend yield in healthcare stocks with average market volume over 2 million. The company has the market capitalization of 57.12 billion. ROA ratio of the company was 12.23% while its ROI ratio was 15.79%. The current ratio was 2.02. Beta factor, which is used to measure risk associated with the stock, was 0.67.

Merck & Co, Inc (NYSE:MRK) and Pfizer Inc (NYSE:PFE) follows Eli Lilly in offering high dividend yield with dividend yield payments of 3.87% and 3.50% respectively.

Disclosure: The views and opinions expressed in this article are exclusively those of the authors who have no stake in any stocks mentioned, and hold no plan to acquire any stake within the next 5 days.




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