It should come as no surprise that the key to any well-built portfolio is diversification. Picking up on trends as far as where consumers’ cash is going is important to the allocation one puts into each sector. Today Americans are battling ailments at unprecedented rates and often coming up with reasons to take prescription medications. From the aging baby-boomer generation dealing with issues like arthritis, to middle age depression, and finally down to children with asthma and thinking problems, pharmaceuticals have a very wide consumer base. Big pharma/healthcare products is a sector with staying power with a strong past, but picking the correct companies within can be very troublesome.
The big pharma companies have been around for a long time, have strong products, deal with adversity, and generate revenue that is pushed back into R&D, generally along with a nice dividend for investors. It is for this reason that I like to think of the following stocks as more of a long term play, so long as the entry point makes sense.
Given this, the stability of the company’s dividend should be a factor in making this selection, so the stocks that follow are listed based on this criterion. Other factors that one should consider are a history of innovative products and an ability to handle class-action litigation.
Below is a list of seven companies with a proven history of strong products capitalizing on pharma market.