Invest in These 3 High-Yield Dividend Shares Immediately
In the dynamic world of medical and pharmaceutical giants, Abbott Laboratories and Pfizer continue to stand out. Both companies have impressive dividend histories, with Abbott Laboratories earning the title of Dividend King for its remarkable streak of 53 consecutive years of dividend increases.
Abbott Laboratories: A Medical Device Specialist
Abbott Laboratories, a medical device specialist and healthcare giant, has a significant global presence. Its diversified business spans across four main therapeutic segments: medical devices, established pharmaceuticals, diagnostics, and nutrition.
One of Abbott's key growth drivers is the FreeStyle Libre, a continuous glucose monitoring system, which has significant white space in the market. The company routinely innovates and earns clearances for newer devices, contributing to its strong performance in the medical devices sector.
Abbott's forward dividend yield is 1.8%, higher than the S&P 500's average of 1.3%. Despite a payout ratio over 100%, there is plenty of room for further dividend increases due to its high free cash flow ($18.2 billion over the trailing 12 months).
Pfizer: A Blue Chip Dividend Stock
Pfizer, a drugmaker and a blue chip dividend stock, has also made headlines for its impressive dividend history. The company has increased its dividend for 16 consecutive years and has paid a dividend for an impressive 347 quarters in a row. Pfizer's forward dividend yield is roughly 6.7%.
Despite facing losses of exclusivity (LOEs) for several top drugs over the next three years, Pfizer's pipeline includes 108 programs in clinical development. Experimental lung cancer drug sigvotatug vedotin and breast cancer candidate atirmociclib could potentially be big winners.
Meanwhile, Pfizer's stock has a forward price-to-earnings ratio of a super-low 8.3, making it an attractive investment for many.
Comparing the Two
While both Abbott Laboratories and Pfizer excel in their respective sectors, their dividend growth rates differ. AbbVie's compound annual growth rate for dividend increases is 6.8%, which is above the usual rate of inflation. In comparison, AbbVie's quarterly dividend has been increased by 39% since 2020, with a current payout of $1.64 per share.
On the other hand, some of the other units within Abbott Laboratories, including structural heart and heart failure, have also performed well. AbbVie's immunology and neuroscience segments have grown by double digits, while oncology revenue has grown by 5% and aesthetics (including Botox cosmetic business) has declined by 9%.
Meanwhile, German companies like Symrise have shown a particularly high dividend growth rate in recent years, with Symrise being highlighted as a German company with strong free cash flow and low payout ratio enabling sustainable dividend increases.
In conclusion, both Abbott Laboratories and Pfizer continue to be strong performers in their respective sectors, with Abbott Laboratories focusing more on medical devices and Pfizer on pharmaceuticals. Both companies offer attractive dividend yields and growth potential for investors.
