Johnson & Johnson (JNJ), Bristol Myers Squibb Co. (BMY): Top Dividend Stocks in Big Pharma

One that investors should keep their eye on is cancer treatment nivolumab. In a recent phase 1 trial, 53% of melanoma patients responded to a combination of nivolumab and another Bristol drug called Yervoy. All of the responders saw at least 80% tumor shrinkage, which is pretty substantial and should translate into extended survival.

While success in the phase 3 trial seems probable, Bristol Myers Squibb Co. (NYSE:BMY) is likely to see competition from Roche’s MPDL3280A and Merck & Co., Inc. (NYSE:MRK)‘s MPDL3280A, which work using the same mechanism of action. Fortunately, the target of the drugs appears to be conserved across a wide range of tumor types, so there should be plenty of room for all three drugs.

Cherry on the top
Sometimes people say they’re dividend investors and then focus solely on the dividend aspect of the stocks they invest in. That seems to be the wrong approach, especially in the pharmaceutical sector where patent expirations and pipelines will drive capital appreciation of the dividend stocks and even the company’s ability to pay the dividend.

The article Top Dividend Stocks in Big Pharma originally appeared on Fool.com and is written by Brian Orelli.

Fool contributor Brian Orelli has no position in any stocks mentioned. The Motley Fool recommends Johnson & Johnson (NYSE:JNJ). The Motley Fool owns shares of Johnson & Johnson.

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