![]() ![]() Novartis isn't the only big pharma company with an astoundingly strong product lineup. Best of all, investors can snatch up shares of Novartis at a forward price-to-earnings (P/E) ratio of 13.7 - a marginal discount to the industry peer average of 13.8. Taking into consideration that the dividend payout ratio is going to come in at around 46% over the next 12 months, this payout is also rather safe. That's over twice as much as the S&P 500 index's 1.5% yield. If this growth outlook wasn't convincing enough, the company also offers a 3.4% dividend yield. That is why analysts anticipate that Novartis' non-GAAP (core) earnings per share (EPS) will increase by 8.7% annually for the next five years. As more of these products are approved by regulatory authorities and launched, business growth should continue. This is because its pipeline consists of more than 130 projects that are currently in clinical development across therapy areas like hematology, immunology, and cardiovascular. Luckily, the company looks prepared for the future as well. As an idea of just how well-rounded a portfolio Novartis boasts, Entresto made up just 11% of its $26.6 billion in total revenue in the first half of 2023. Leading the way, heart failure treatment Entresto is set to surpass $6 billion in 2023 revenue. With such an extensive reach, it's not shocking that the company has 14 medicines that are on pace to top $1 billion in revenue. Including its Sandoz generics and biosimilars business which is expected to complete a spinoff in the second half of this year, Novartis' products treat almost 800 million people around the world. Here's why these two top biotech stocks are potential buys right now. Swiss drugmaker Novartis (NYSE: NVS) and French drugmaker Sanofi (NASDAQ: SNY) each look like smart picks for income investors. Many leading pharmaceutical companies are known for reliably paying dividends to shareholders. The trick is diversifying across top businesses in numerous industries to build an unstoppable stream of passive income. Income investing can be a great strategy for people looking to match their recurring bills with recurring dividend income.
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