A series of factors are constantly at play for investors considering yield-oriented investments. The current yield offered by a given security is an obvious one - the dividend distribution size from the start is a good indicator of the trajectory of how much income one expects to receive over time from a given company.
Companies with track records of growing their dividends over time, those who have shown free cash flow growth, and those who continually reinvest in creating new products with significant long-term upside potential should be considered first.
In this article, I'm going to dive into two companies I believe provide an excellent opportunity for income investors in the pharmaceuticals space.
For investors looking for a pharmaceuticals giant bolstered by top-selling staple drugs, Pfizer Inc. (NYSE:PFE) rests firmly on a solid base, with brand-name Viagra continuing to lead this company to excellent profitability levels year after year.
The company's 3.1% yield and large market capitalization (more than $250 billion) make this company one of the lower-risk options for long-term yield seeking investors.
The company receives approximately half of its sales from outside of the United States, making this a great play for global growth in the long-term for investors, despite its strong U.S. presence.
Another smaller global giant, British GlaxoSmithKline PLC (NYSE:GSK) has a market capitalization of approximately $100 billion and a higher yield of 4.9%, making this company a better play for more aggressive income-oriented investors seeking a higher growth profile along with a higher risk profile.
Invest wisely, my friends.
