February is the shortest month, but that doesn’t mean that income investors don’t have much time to find great stocks. Three Motley Fool contributors believe they have identified great Dividend Stocks I’ll buy it this month. This is why they like it Abbvie(NYSE: ABBV), amgen(NASDAQ: AMGN)and Gilead Science(Nasdaq: Guild).
Keith Speets (Abbvie): Abbvie has been a longtime favorite for income investors. Large drug makers’ 52 consecutive year of dividend increases (including cases where they were part of Abbott) Qualifies as dividend king. Its forward dividend yield is a juicy 3.4%.
However, for a while, Abbvie may not have been considered a great choice by many investors. The company’s best-selling drug, Humira, lost its US patent exclusivity in early 2023 over the years. As a result, revenue and profits began to sink.
But today is a very different story. The business of two successors of Humira, Skyrizi and Rinvoq, is booming. The two drugs generated total sales that overturned Fumira’s peak annual sales in 2024. Abbvie will generate more than $31 billion in revenue in 2027.
Drugmakers also have other important growth drivers. Quipta and Ubrelvy stand out, with sales of two migraine therapies surged by 76% and 30% year-on-year in the fourth quarter of 2024, respectively.
Abbvie’s pipeline also looks promising. The company has over 50 programs for mid- or late-stage clinical development. Tavapadon is one of the candidates to watch in the short term. Recently, we reported positive late-stage drug results in the treatment of early Parkinson’s disease.
Prosper Junior Biny (Amgen): Following the unfortunate Phase 2 clinical trial results, what should we do when a biotech stock falls off the cliff? If the drugmaker’s outlook is barely affected, it’s a good opportunity to buy stocks.
It brings us to Amgen. In November, we reported the results of medium-term clinical trials of maritide, a weight loss treatment, and the market I’ll send you stock Over 12%.
Amgen has regained much of its loss, but inventory is still falling in the late 12 months. Those seeking long-term income should have the opportunity to buy stocks as their prospects and dividend programs remain strong.
The company’s lineup includes 13 products that generate more than $1 billion in sales. Many of them are growth drivers containing Repatha to treat high cholesterol. Uniformity of postmenopausal osteoporosis treatment. Tepezza for thyroid eye disease.
Amgen has several other drugs that don’t bring in $1 billion in annual sales yet, but soon there’s Tezspire, which treats asthma in particular.
The drugmaker’s pipeline is still fairly deep and has dozens of programs. Despite not meeting expectations in medium-term clinical trials, Maritide could potentially succeed in the weight loss and obesity market.
Finally, Amgen has increased by 201% over the past decade, offering a forward yield of 3.3%. S&P 500The average is about 1.3%. Although they may have lagged behind the market over the past year, inventory remains a great option for dividend seekers.
David Jagielski(Gilead Science): Gilead Sciences from Biopharmaceutical Company can make great dividend stocks to buy and hold now. It produces 3.2%, more than twice the average of the S&P 500.
The company is also expanding its dividends. Over the course of five years, Gilead’s quarterly payments rose from $0.63 per share to $0.77. This is a 22% increase. It is important for investors to find companies that are likely to increase their payments, as they will help offset the impact of inflation.
Gilead’s business also generates a lot of free cash flow. This not only supports current dividends, but also paves the way for increased future payments. After 12 months, the company generated a total of $9.4 billion in free cash flow. It’s far surpassing the $3.9 billion dividends paid during that time frame.
Another reason dividend investors love Gilead is because of the stability the stock offers. The beta value is approximately 0.20. In other words, stock prices generally do not move along with the market. But nonetheless, they still make great investments that have risen over 50% over the past five years.
Gilead has a robust business focusing on HIV drugs. However, the company is pursuing growth opportunities in the treatment of liver disease and cancer, which has become a much more diverse investment overall. It may not be a fast-growing pharmaceutical stock, but its robust basics and large dividends could make it the ideal investment that income seekers will load today.
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David Jagielski There is no position in any of the stocks mentioned. Keith Speets Abbvie has a position. Prosperous Junior Bty There is no position in any of the stocks mentioned. Motley Fool has been working and recommending Abbvie, Abbott Laboratories and Gilead Sciences. Motley Fools recommend amgen. To Motley’s fool Disclosure Policy.
