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Daily Traders Edge

Here Are 3 Dividend Stocks To Buy Now In This Chaotic Market

December 06
10:41 2021

Every major U.S. stock index has taken a step backward since the start of December. U.S. equities have reversed course this month because of inflationary pressures, the omicron variant, and year-end tax-loss harvesting.

What’s the best strategy to navigate this chaotic market? Dividend stocks are always worth owning as part of a well-rounded portfolio. Equities that dole out regular dividends to shareholders, after all, can smooth out the rough patches during volatile periods in the market. What’s more, these types of stocks come with a built-in level of safety because of their attractiveness as passive income vehicles.

Which dividend stocks are must-owns right now? The top pharma stocks Amgen AMGN 3.48% )Bristol Myers Squibb BMY 1.56% ), and GlaxoSmithKline GSK 2.04% ) are all worth adding to your portfolio soon.

Here’s a look at the key features associated with each of these three rock-solid dividend plays.

1. Amgen

Shares of this biotech heavyweight printed a fresh 52-week low last week. Mr. Market has severely punished this blue-chip drugmaker this year for some rather questionable reasons. In a nutshell, Amgen has had to deal with some pricing issues, stiffer competition, COVID-19 hiccups, and a slow ramp-up for a small cadre of newer medicines. The biotech’s top-line growth hasn’t skipped a beat, however. The company’s annual revenue is on track to rise by a respectable 2.4% in 2021 relative to 2020. Moreover, Amgen’s annual sales are forecast to jump by another 4.1% in 2022. As a result, the biotech recently announced another 10% boost to its dividend, bringing its annualized yield up to a handsome 3.8% at current levels. After this latest bump, Amgen’s annual dividend yield is now well above the average for its major drug manufacturing peer group.

2. Bristol Myers Squibb

Like Amgen, Bristol’s shares have been unfairly punished by this moody market in 2021. The drugmaker’s shares, in fact, are dangerously close to their 52-week low at the time of this writing. Bristol’s stock has lost favor with investors this year because of patent expiration headwinds, a key regulatory delay for the heart drug mavacamten, and management’s cautious approach to business development.

Continue Reading at The Motley Fool

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