Bristol Myers Squibb Co. (BMY), And Talk Of Dividend Yields In Pharma

This particular agreement is intended to help build on the two firms’ previous work together, with a goal of unlocking various molecular information from patients. This information can then be further used in recommending more accurate treatment options for such patients.

Similar to GlaxoSmithKline plc (ADR) (NYSE:GSK), the share price of Eli Lilly & Co. (NYSE:LLY) is not anticipated to have any major upward movement over the next year. However, the company’s dividend payout of $1.96 per share provides a nice dividend yield of 3.7% to its shareholders.

Product pipeline

Not to be outdone, Bristol Myers Squibb Co. (NYSE:BMY) is also keeping its product pipeline full. One key area for this big pharma is its treatment for Hepatitis C. The company is currently working with three test medications – and recently these meds cleared up the Hepatitis C virus in nearly 100% of the test patients who tried it.

Presently, shares of Bristol Myers Squibb Co. (NYSE:BMY) are trading near their 52-week high, yet analysts are split on this stock in terms of Buy and Hold ratings. The company’s dividend payout of $1.40 per share equates to an annual dividend yield of 3.4%. Here too, then, investors may not see phenomenal share price growth, but will be paid nicely while they wait for growth opportunities.

With all three of these companies, the competition in the industry can be fierce. In some instances, the companies may work together in bringing a product to market, while collaborating in other situations may not be the best solution.

In determining potentially profitable big pharma stocks, investors should keep a sharp eye not just on earnings per share and current share price, but also any news regarding how product trials are faring, as this can literally make or break an investment – especially in the short run.

The bottom line

Oftentimes, a trial medication’s success or failure can substantially affect the share price of big pharmaceutical firms – moving it either up or down dramatically. But for those who are seeking stocks with nice steady dividend income, any of these three big pharmaceuticals can certainly do the job.

The article Are Dividend Yields the Cure for Pharma Investors’ Woes? originally appeared on Fool.com and is written by Nauman Aly.

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