After underperforming the overall market for the past few years, large-cap pharmaceutical stocks may now be positioned to outperform as the impact of tariffs on foreign products and services begins to take hold. Many investors who hold pharmaceutical stocks were breathing a sigh of relief, as many of the top companies in the sector are exempt from tariffs due to an executive order signed by the U.S. president. While pharmaceuticals were initially exempt from the 10% global tariff imposed in April, President Trump has repeatedly stated his intention to impose tariffs on imported drugs. These tariffs are under consideration due to national security concerns and the desire to encourage the reshoring of pharmaceutical manufacturing to the United States.
With approximately $1.6 trillion in global sales, the pharmaceutical industry is a steadily growing sector driven by the rise of personalized medicine, the increase in chronic diseases, and an aging global population. At 24/7 Wall St., we have consistently believed that investing in the pharmaceutical industry offers our readers a range of potential opportunities. Plus, most across the investment world still consider the industry to be defensive in nature, so it is not a bad idea, given the current market volatility.
We screened our 24/7 Wall St. pharmaceutical dividend stock universe, looking for the best large-cap companies that top banks and brokerage firms have current Buy ratings on and pay among the highest dividends in the sector. Four well-known names topped the list; all are safe options for nervous investors now.
Why do we cover high-yield dividend pharmaceutical stocks?
Pharmaceutical dividend stocks are a favorite among investors for good reason. They provide a steady income stream and offer a promising avenue for total return. Total return, a comprehensive measure of investment performance, encompasses interest, capital gains, dividends, and distributions realized over time. At 24/7 Wall St., we consistently highlight the long-term potential of total return to our readers, as it is one of the most effective ways to boost the prospects of overall investing success. Once again, total return refers to the collective increase in a stock’s value, including dividends.
AbbVie
AbbVie Inc. (NYSE: ABBV | ABBV Price Prediction) ranks sixth among the largest biomedical companies by revenue. This stock is one of the top pharmaceutical stock picks on Wall Street and is an excellent choice for long-term ownership. AbbVie discovers, develops, manufactures, and sells pharmaceuticals worldwide.
The company offers:
- Humira, an injection for autoimmune and intestinal Behçet’s diseases and pyoderma gangrenosum
- Skyrizi to treat moderate to severe plaque psoriasis, psoriatic disease, and Crohn’s disease
- Rinvoq to treat rheumatoid and psoriatic arthritis, ankylosing spondylitis, atopic dermatitis, axial spondyloarthropathy, ulcerative colitis, and Crohn’s disease
Imbruvica for the treatment of adult patients with blood cancers; Epkinly to treat lymphoma - Elahere to treat cancer
- Venclexta/Venclyxto to treat blood cancers
It also provides:
- Facial injectables, plastics and regenerative medicine, body contouring, and skin care products
- Botox therapeutic
- Vraylar for depressive disorder
- Duopa and Duodopa to treat advanced Parkinson’s disease
- Ubrelvy for the acute treatment of migraine in adults
- Qulipta for episodic and chronic migraine
In addition, the company offers Ozurdex for eye diseases, as well as Lumigan/Ganfort and Alphagan/Combigan for reducing elevated intraocular pressure in patients with open-angle glaucoma or ocular hypertension. The company also offers Restasis to increase tear production, along with other eye care products.
Further, it provides:
- Mavyret/Maviret to treat chronic hepatitis C virus genotype 1-6 infection
- Creon, a pancreatic enzyme therapy
- Lupron to treat advanced prostate cancer, endometriosis, and central precocious puberty, and patients with anemia caused by uterine fibroids
- Linzess/Constella to treat irritable bowel syndrome with constipation and chronic idiopathic constipation
- Synthroid for hypothyroidism
Bristol-Myers Squibb
Bristol Myers Squibb Co. (NYSE: BMY) is a global biopharmaceutical company committed to discovering, developing, and delivering innovative medicines for patients with serious diseases in areas such as oncology, hematology, immunology, cardiovascular disease, neuroscience, and other therapeutic areas. This remains a solid pharmaceutical stock to own in the long term, offering an outstanding entry point with a reliable dividend.
Its platforms comprise chemically synthesized or small-molecule drugs, including protein degraders, as well as biologics produced through biological processes. These platforms also encompass ADCs, CAR-T cell therapies, and radiopharmaceutical therapeutics.
Small-molecule drugs are typically administered orally in the form of tablets or capsules, although other drug delivery mechanisms are also employed. Biologics are usually administered through injections or by intravenous infusion.
CAR-T cell therapies are administered by intravenous infusion.
Its growth portfolio includes:
- Opdivo
- Opdivo Qvantig
- Orencia
- Yervoy
- Reblozyl
- Opdualag
Bristol-Myers Squibb’s legacy portfolio includes:
- Eliquis
- Revlimid
- Pomalyst/Imnovid
- Sprycel
- Abraxane
Jefferies has a Buy rating with a $68 price target.
Johnson & Johnson
Johnson & Johnson (NYSE: JNJ) is a multinational corporation based in the United States that specializes in pharmaceuticals, biotechnology, and medical devices. With a diverse product portfolio and a familiar, solid brand, Johnson & Johnson is among the most conservative of the major pharmaceutical companies. The company researches, develops, manufactures, and sells a range of healthcare products. Its primary focus is products related to human health and well-being.
It operates through two segments:
- Innovative Medicine
- MedTech
The Innovative Medicine segment is focused on various therapeutic areas, including:
- Immunology
- Infectious diseases
- Neuroscience
- Oncology
- Pulmonary hypertension
- Cardiovascular and metabolic diseases
Products in this segment are distributed directly to retailers, wholesalers, distributors, hospitals, and healthcare professionals for prescription use.
The MedTech segment encompasses a diverse portfolio of products utilized in orthopedics, surgery, interventional solutions, cardiovascular intervention, and the vision field. It also offers a commercially available intravascular lithotripsy (IVL) platform for the treatment of coronary artery disease (CAD) and peripheral artery disease (PAD).
Citigroup has a Buy rating with a $185 price objective.
Pfizer
Pfizer Inc. (NYSE: PFE) was established in 1849 in New York by two German entrepreneurs. This top pharmaceutical stock was a massive winner in the COVID-19 vaccine sweepstakes, but has been crushed over the past two years as many people have not received boosters. Pfizer discovers, develops, manufactures, markets, distributes, and sells biopharmaceutical products worldwide. It pays a dependable dividend, which has risen yearly for the past 14 years.
The company offers medicines and vaccines in various therapeutic areas, including:
- Cardiovascular, metabolic, and women’s health under the Premarin family and Eliquis brands
- Biologics, small molecules, immunotherapies, and biosimilars under the Ibrance, Xtandi, Sutent, Inlyta, Retacrit, Lorbrena, and Braftovi brands
- Sterile injectable and anti-infective medicines and oral COVID-19 treatment under the Sulperazon, Medrol, Zavicefta, Zithromax, Vfend, Panzyga, and Paxlovid brands
Pfizer also provides medicines and vaccines in various therapeutic areas, such as:
- Pneumococcal disease, meningococcal disease, and tick-borne encephalitis
- COVID-19 under the Comirnaty/BNT162b2, Nimenrix, FSME/IMMUN-TicoVac, Trumenba, and the Prevnar family brands
- Biosimilars for chronic immune and inflammatory diseases under the Xeljanz, Enbrel, Inflectra, Eucrisa/Staquis, and Cibinqo brands
- Amyloidosis, hemophilia, and endocrine diseases under the Vyndaqel/Vyndamax, BeneFIX, and Genotropin brands
Pfizer anticipates full-year 2025 revenues in the range of $61.0 to $64.0 billion. This includes the expectation that revenues from COVID-19 products in 2025 will be broadly consistent with those in 2024, after excluding approximately $1.2 billion of non-recurring revenue for Paxlovid in 2024.
Five Stocks Trading Under $10 That Pay Huge Monthly High-Yield Dividends
Top Gaining Stocks
Top Losing Stocks