3 No-Brainer Pharmaceutical Stocks to Buy With $500 Right Now
- Pharmaceutical stocks offer a stable investment opportunity due to their diverse product portfolios, robust pipelines, and commitment to dividend growth, making them attractive even with a small investment like $500.
- Abbott Laboratories, Pfizer, and Johnson & Johnson are highlighted as strong investment choices because of their diversification, innovative contributions, and strategic growth moves, such as acquisitions and spin-offs.
- These companies provide strong financial performance and are regularly listed as 'Dividend Kings,' which reflects their long history of annual dividend increases, underscoring their long-term viability and profitability.
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Introduction
Pharmaceutical stocks have long been recognized as a stable and profitable investment option, capable of thriving in any market environment. Unlike other sectors that are heavily influenced by economic fluctuations, the pharmaceutical industry remains relatively steady due to the constant demand for medications. This article will explore three pharmaceutical stocks that stand out as attractive investments, even with just $500.
Why Pharmaceutical Stocks Remain a Safe Bet
Pharmaceutical companies are known for their diverse portfolios of products and robust pipelines. These factors contribute to their ability to deliver earnings growth over time and ensure long-term financial stability. Additionally, many pharmaceutical firms are committed to paying dividends, providing investors with a guaranteed stream of annual revenue.
1. Abbott Laboratories - A Diversified Leader
Abbott Laboratories (NYSE: ABT) is a pharmaceutical company that has not only excelled in its core business but has also diversified into medical devices, diagnostics, and nutrition. This diversification is one of the key strengths of Abbott, as it allows the company to mitigate risks associated with any one particular business segment. For instance, while the diagnostics business has been affected by the decline in coronavirus testing, the medical devices division has seen double-digit revenue growth in recent quarters.
Historically, Abbott has been the most profitable healthcare stock for investors, with a cumulative compound return of 7,803,730% between 1937 and December of last year, according to a report by Hendrik Bessembinder at Arizona State University. This impressive track record is further underscored by Abbott's commitment to dividend growth. The company is a "Dividend King," having raised its dividend payment annually for more than 50 consecutive years.
2. Pfizer - A pharmaceutical Titan
Pfizer (NYSE: PFE) is another pharmaceutical giant that offers a compelling investment opportunity. Despite experiencing a drop in coronavirus vaccine and treatment sales, the company is poised for significant growth with its new products. Pfizer predicts that new products outside of the coronavirus business will contribute $20 billion to its revenue by 2030. The acquisition of oncology specialist Seagen is already showing positive results, with Seagen's products contributing meaningfully to Pfizer's revenue.
Pfizer's oncology segment has been a key driver of growth, with advanced prostate cancer drug Xtandi growing sales by 23% from the prior year period and pacing an annual run-rate of almost $1.7 billion in revenue. Additionally, Pfizer's acquisition of Seagen is expected to yield meaningful cost savings in future years while rapidly expanding its oncology pipeline.
3. Johnson & Johnson - A Leader in Innovation
Johnson & Johnson (NYSE: JNJ) has recently spun out its consumer health business into a separate entity, Kenvue, to focus on higher-growth businesses in pharmaceuticals and medical technology. This strategic move has proven to be successful, with the company reporting operational sales growth of 6.3% for its innovative-medicines branch and 6.4% growth for medtech in the most recent quarter.
Johnson & Johnson's recent approvals of Darzalex in ulcerative colitis and Rybrevant plus Lazcluze in non-small cell lung cancer are expected to add to the company's growth ahead. The company's solid financial situation, with $19 billion in free cash flow, should help it maintain its position as a Dividend King well into the future.
Conclusion
Investing in pharmaceutical stocks with $500 may seem like a challenge, but it offers a unique opportunity for long-term growth and stability. Abbott Laboratories, Pfizer, and Johnson & Johnson are three no-brainer pharmaceutical stocks that stand out due to their diversified portfolios, strong pipelines, and commitment to dividend growth.
While the pharmaceutical industry is inherently stable, it's crucial to stay informed about the latest developments and trends. By investing in these companies, you're not only securing your financial future but also contributing to the advancement of healthcare through innovative treatments and technologies.
Whether you're a seasoned investor or just starting out, these pharmaceutical stocks are certainly worth considering. Their proven track records and promising future prospects make them an attractive addition to any investment portfolio.
References
- 3 No-Brainer Pharmaceutical Stocks to Buy With $500 Right Now. The Motley Fool. Retrieved from https://www.sharewise.com/us/news_articles/3_NoBrainer_Pharmaceutical_Stocks_to_Buy_With_500_Right_Now_TheMotleyFool_20241018_1110
- 3 No-Brainer Biotech Stocks to Buy With $200 Right Now. Yahoo Finance. Retrieved from https://finance.yahoo.com/news/3-no-brainer-biotech-stocks-081500632.html
- 3 No-Brainer Pharmaceutical Stocks to Buy With $500 Right Now. AOL. Retrieved from https://www.aol.com/3-no-brainer-pharmaceutical-stocks-091000621.html
- 3 No-Brainer Stocks to Buy With $500 Right Now. The Motley Fool. Retrieved from https://www.fool.com/investing/2024/05/15/3-no-brainer-stocks-to-buy-with-500-right-now/
