Pfizer Inc. (PFE), Merck & Co., Inc. (MRK) & More: Drug Stocks on Citi’s Dividend Buy List

Bristol Myers Squibb Co. (NYSE:BMY)

Bristol Myers has taken a slightly different approach to the drug space than its peers here. It has been cutting costs and refocusing on its core, but it has also made a concerted effort to partner on its projects. This includes a deal with Pfizer Inc. (NYSE:PFE) that recently led to the approval of a drug to reduce the risk of stroke and blood clots in people who have atrial fibrillation (ELIQUIS).

While the partnership approach helps to reduce the company’s risk profile on new drugs, Bristol Myers has a pretty ugly outlook on the expiration front. And the next few years are going to be the worst of it. The shares have run up of late, though they are still well below their all-time highs. A 3.5% or so yield is enticing, but there will likely be better buying opportunities as patent expiration issues unfold.

Drugs

Big drug companies were once considered safe and reliable. While patent expirations changed that, it also brought about lower prices and higher dividend yields. All of the companies on Citi’s list are good, solid firms. However, their risk profiles need to be carefully evaluated before a commitment is made. Industry big-wig Pfizer is probably the all-around best option.

The article Drug Stocks on Citi’s Dividend Buy List originally appeared on Fool.com.

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