Three High-Gain Dividend Shares to Invest in by 2025
Three High-Gain Dividend Shares to Invest in by 2025
High-yield dividend stocks might not tickle everyone's fancy, but if you're all about income, here are three pharma giants you should consider scooping up in 2025: AbbVie (ABBV), Amgen (AMGN), and Pfizer (PFE).
Why these three? Our crack team of contributors spilled the beans on their reasons.
AbbVie: The Dividend King with a Solid Growth Plan
Keith Speights (AbbVie):
Income enthusiasts will surely appreciate AbbVie's 3.68% forward dividend yield. But what's really got those folks salivating is the company's 52-year-long history of dividend increases. That's a solid run, people, and it's enough to earn AbbVie a spot in the elite group of stocks known as Dividend Kings.
So, what's putting all the pretty, green income on the table for AbbVie? Their hugely successful autoimmune disease drug, Humira, has been making heads turn for years. But Humira's days of ruling the roost are numbered as it faces biosimilar competition.
Fear not! AbbVie has been smart with their preparations. The sales for Rinvoq and Skyrizi are soaring, and other blockbusters like Botox are kicking butt in the market. AbbVie has also got a pipeline chock-full of over 90 programs in clinical development, with over 80% of them sporting a novel mechanism of action. That's some serious competitive advantage!
Expect solid growth from AbbVie in the second half of the decade, and their stock is looking reasonably priced, too, with a forward earnings multiple of 15.
Amgen: A High-Yield Stock with Multiple Growth Catalysts
Prosper Junior Bakiny (Amgen):
Oh love, the market had such high hopes for Amgen's weight loss medicine, MariTide. But when Amgen announced not-good-enough-but-still-positive phase 2 data, shares took a life-threatening nose dive. The biotech's shares haven't recovered yet – but misfortunes in the stock market can present an opportunity.
Amgen still has plenty to offer, though. They've got other products on the way, like asthma therapy Tezspire (shared with AstraZeneca) and thyroid eye disease medicine Tepezza. And their pipeline? It's looking pretty sweet, too. They're targeting the biosimilar market with a whopping 80% of their pipeline candidates featuring a novel mechanism of action.
Amgen's obesity hopes haven't died down yet, either. They're working on other obesity candidates and focusing on innovative new therapies. And let's not forget about their growth prospects – they're a Dividend Aristocrat with a forward yield of approximately 3.6%, and they've increased their payouts by 201.3% over the past decade.
So, Amgen might be having a tough time, but the future is still looking bright – and their shares are still an excellent option for income-focused investors.
Pfizer: A High-Yield Stock with a Tasty Dividend
David Jagielski (Pfizer):
Pfizer's dividend might seem a tad too high at first glance. But with earnings growing, a "sacred cow" commitment to dividends, and a in-the-works deal with Seagen, Pfizer is looking like a high-yield steal once you dig deeper.
Despite some short-term market noise, Pfizer's business remains strong, with earnings expected to grow slightly to a range of $2.85 to $3.00 for 2025. With a quarterly dividend of $0.43, Pfizer is looking like a stable income source with strong growth prospects.
So, whether you're looking to add some spice to your portfolio or just want a tasty, steady-income stock, Pfizer might be your new best friend.
Sources:1. Stocks to Buy in 2025: 3 Big Pharma Stocks Cashing in on High Dividend Yields and Growth2. Invest in High-Yield Dividend Stocks: 3 Stocks to Buy Now3. Blue chip stocks4. Dividend King5. Dividend Aristocrat6. Kings of Dividend Stocks
Based on the given text, here are two sentences that contain the words 'investing', 'finance', and 'money':
- If you're interested in investing in high-yield stocks, consider considering AbbVie (ABBV), Amgen (AMGN), and Pfizer (PFE) in 2025, according to the team's analysis.
- For those looking to allocate their finance towards income-focused opportunities, investing in dividend aristocrat stocks like Amgen can be a smart financial decision.