If you have $500 at hand, consider investing in these two enduring pharmaceutical stocks:
Pharmaceutical stocks can provide a sense of safety for your investment portfolio due to their reliable revenue stream and potentially lucrative dividend payments. The demand for pharmaceutical products is unwavering, even in turbulent economic times, as doctors continue to prescribe essential medications and patients continue to buy necessary treatments. With $500 or less, you can invest in two pharmaceutical giants that could be excellent, long-term additions to your portfolio.
1. AbbVie
AbbVie, with its ticker symbol (ABBV), boasts a well-known immunology drug, Humira, which brought in over $21 billion at its peak in 2022. However, as competitors entered the market, Humira's sales have diminished. Nevertheless, AbbVie prepared for this eventuality and has additional strong products that can sustain its growth over time.
In the immunology sector, AbbVie has successfully launched two new drugs – Rinvoq and Skyrizi – which together have surpassed Humira's peak sales and are on an upward trajectory. In the latest quarter, Rinvoq and Skyrizi sales soared by 45% and 50% respectively to $1.6 billion and $3.2 billion.
AbbVie also boasts an impressive neuroscience portfolio, including Botox for migraines and Vraylar for bipolar disorder. Most recently, the company completed the acquisition of Cerevel to expand its product lineup further.
In the latest quarter, AbbVie exceeded expected sales by more than $200 million and raised its full-year revenue and earnings per share guidance for the third time this year. Plus, as a Dividend King, investors can expect steady dividend growth.
Even with Humira's declining revenue, it appears that AbbVie is transitioning into a period of robust growth with its new and innovative products.
2. Pfizer
Pfizer, represented by the ticker (PFE), skyrocketed in the early stages of the pandemic when it introduced the world's first coronavirus vaccine. This product and Pfizer's coronavirus treatment even helped the company achieve over $100 billion in annual revenue, its highest ever.
However, as coronavirus product demand waned and some of their top drugs approach the end of their patents, Pfizer's revenue and stock price have declined. With its shares trading at a low 8x forward earnings estimates, investors might see this as a bargain.
Despite the anticipated decline in the coronavirus platform's revenue, Pfizer has successfully introduced several new products recently, and the acquisition of cancer specialist Seagen will help them meet their long-term revenue goals.
Pfizer's oncology portfolio recently saw a 31% year-over-year growth in the first half of the year, making it the No. 3 U.S. oncology company by revenue. The company also emphasizes dividend growth as a crucial part of its strategy, ensuring investors can rely on passive income.
So why not consider incorporating these two pharmaceutical giants into your "forever" portfolio? They combine a reliable revenue stream, potential for dividend income, and growing product pipelines.
Sources:
- PhRMA: Pharmaceutical Research and Manufacturers of America
- Statista
- FDA’s Center for Drug Evaluation and Research
- Pfizer: Annual Reports, Clinical Trials, News Releases, and Investor Presentations.
Following the text, here are two sentences that contain the words 'finance', 'money', and 'investing':
- If you're interested in finance and want to invest your money in the pharmaceutical sector, considering AbbVie (ABBV) and Pfizer (PFE) could provide strong, long-term returns.
- With a focus on revenue growth and dividend income, investing in these pharmaceutical giants, such as AbbVie and Pfizer, can be an excellent way to diversify your investment portfolio and secure your financial future.
