Income investors seeking exposure to the COVID-19 vaccine manufacturing market should consider three drug stocks.
Despite the controversy around the AstraZeneca (NASDAQ:AZN) vaccine, the stock pays a dividend in the 2.3% range. Scientists have a better understanding of the side effects of the vaccine. With new guidelines on which age group should get the vaccine, AstraZeneca could benefit from higher sales.
AZN’s Alexion acquisition is a positive catalyst. It acquired Alexion to broaden its pipeline in specialized care. The firm expects double-digit revenue through 2025. AZN will globalize Alexion’s portfolio to support the growth.
Pfizer’s (NYSE:PFE) spinoff of Upjohn lightened its portfolio and raised cash. Pfizer reduced its debt and is a more focused firm. Its 50/50 partnership with BioNTech (NASDAQ:BNTX) is a success. BNTX rivals Moderna in Covid-19 vaccine sales worldwide.
The 86% effectiveness for Pfizer’s third vaccine shot in Israel suggests strong revenue next.
PFE stock pays a dividend in the 3% range.
The approval of Johnson & Johnson’s (NYSE:JNJ) single-shot vaccine is a catalyst for JNJ. The stock pays a dividend of around 2%. So, income investors collect a steady income while benefiting from the profit growth ahead. Even though the vaccine is not a big contributor to total revenue, daily mentions of the vaccine will raise the company's name awareness to consumers. That will drive sales higher for its consumer products.
