U.K. Dividend Aristocrats List: 2024 Rankings by Yield

7. Hikma Pharmaceuticals PLC (LON:HIK.L)

Dividend Yield as of December 28: 3.09%

Hikma Pharmaceuticals PLC (LON:HIK.L) ranks seventh on our list of the best FTSE dividend stocks. The London-based pharmaceutical company specializes in high-quality generic medicines and other pharmaceutical products. The company’s diversified business model, which includes generics, injectables, and branded medications, offers numerous growth opportunities. This was reflected in its earnings, where the strong performance of the Branded division helped counterbalance sector-wide challenges in Generics. In addition, it has a robust pipeline of new product launches, with 36 filings submitted to the US Food and Drug Administration (FDA) in just the first half of the year. This impressive pipeline is expected to generate excitement and help mitigate any difficulties with current products. The stock has surged by roughly 12.5% in the past 12 months.

In the first half of 2024, Hikma Pharmaceuticals PLC (LON:HIK.L) reported revenue of $1.57 billion, which showed a 10% growth from the same period last year. The company’s operating profit also jumped to $351 million, from $245 million in the prior-year period. It also reported a solid cash position, with its operating cash flow amounting to $198 million.

Hikma Pharmaceuticals PLC (LON:HIK.L)’s Branded business performed exceptionally well, benefiting from continued investment in expanding its portfolio of oncology and chronic treatments. The Injectables segment is maintaining strong momentum, with new product launches and additional capacity contributing to growth. Moreover, the strategic acquisition of Xellia’s products, manufacturing facility, and R&D assets, once completed, is expected to support the long-term prospects of the business. The Generics division continues to stand out by focusing on more complex products and the quality of its US-based manufacturing capabilities. The outlook for 2024 remains positive, and the company has raised its revenue and profit guidance.

Hikma Pharmaceuticals PLC (LON:HIK.L) currently offers an interim dividend of $0.32 per share. The company has remained committed to its shareholder obligation, paying regular dividends to them since 2005. Moreover, in the first half of the year, it paid $104 million to shareholders through dividends. As of December 28, the stock has a dividend yield of 3.09%.