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Posts Tagged ‘Bristol myers Squibb’

Low Beta Dividend Stocks for an Uncertain Market

As the markets continue to show uncertainty and a lack of capitulation, investors are looking for a place to hunker down.  The best place at this time is in low beta stocks with dividend yields (defensive stocks) to support the share price.  I had identified 5 stocks that are up in price the last 4 weeks and have a bullish outlook for when the market rallies.  Here are 5 stocks to consider:

Tobacco operator Altria Group (MO) seems to do well in these types of markets.  It is up 4.9% over the last 4 weeks.  It has a low beta of 0.25 with a dividend yield of 4.91%.  MO has an equity summary score of 7.4 out of 10 for a Bullish outlook.

Low cost retailer Wal-Mart (WMT) shines when there is a slow economy.  WMT is up 14% in the last 4 weeks.  It has a beta of 0.33 and a dividend yield of 2.35%.  WMT has an equity summary score of 8.4 out of 10 for a Bullish outlook.

Telecom giant AT&T (T) is a steady as they go in this type of market.  AT&T is up 5.4% in the last 4 weeks.  It has a beta of 0.57 and a dividend yield of 5.03%.  AT&T has an equity summary score of 9.8 out of 10 for a VERY Bullish outlook.

Retailer Target Corp (TGT) has been performing great this year.  TGT is up 5.13% in the last 4 weeks.  It has a beta of 0.58 with a dividend yield of 2.06%. TGT just announced a 20% increase in its dividend.  TGT has an equity summary score of 9.2 out of 10 for a VERY Bullish outlook.

Pharmaceutical giant Bristol-Myers Squibb (BMY) is a solid dividend stock.  BMY is up 3.73% in the past month.  It has a beta of 0.41 with a dividend yield of 3.97%.  BMY has an equity summary score of 9.1 out of 10 for a VERY Bullish outlook.

Building a High Dividend Yield, Low Beta Income Portfolio (Part 2)

For income investors wanting to go it alone, they should consider creating a portfolio of high dividend stocks with low beta.  This type of portfolio will provide a risk to reward profile during times of uncertainty in the markets.  By adding the component of a bullish outlook to the low beta stocks indicates these stocks can be held in a long-term portfolio.  The high dividend yield can be compounded over time and will increase as these stocks raise their dividends each year.  This portfolio will be built in a series of articles.  You can read Part 1 here.  Below is Part 2 with more stocks to look at for adding your portfolio.

Eli Lilly and Company (LLY) discovers, develops, manufactures, and sells pharmaceutical products worldwide.  We believe LLY is executing well on its
strategy to counter the recent patent expiration on Zyprexa and impending expirations on other drugs that in the aggregate are expected to reduce annual
sales by about $7 billion from 2010 through 2014. To rejuvenate sales, LLY plans to bolster growth engines in Japan, emerging markets, animal health, and
drug franchises in oncology and diabetes. As of January 2012, LLY had 14 compounds in Phase 3 trials or under regulatory review. The most important
pipeline drug, in our opinion, is solanezumab for Alzheimer’s disease.  Lilly has a dividend yield of 4.67% and a 3-year beta of 0.54.  LLY has a PE of 10
with a ROI of 20%.  LLY has an equity summary score of 9.9 out of 10 for a VERY Bullish outlook.

Bristol-Myers Squibb Company (BMY) engages in the discovery, development, licensing, manufacturing, marketing, distribution, and sale of biopharmaceutical products that help patients prevail over serious diseases worldwide.  Preparing for looming U.S. and European patent expirations over the next four years on key products such as Plavix, Avapro, Sustiva and Abilify, BMY has become more active in recent years in expanding its new product portfolio through acquisitions and in-licensed products.  In March 2011, the FDA approved Yervoy, a novel treatment for advanced melanoma that we think has over $1.6 billion in sales potential by 2016. Another key R&D drug that we think has significant potential is Eliquis, a bloodthinning agent for stroke
prevention that BMY is co-developing with Pfizer (PFE). Supported by strong clinical data, sales of Eliquis should exceed $3.5 billion by 2016, in our
estimation.  BMY has a dividend yield of 4.17% and a 3-year beta of 0.50.  BMY has a PE of 15 with a ROI of 17%.  BMY has an equity summary score of 9.4 out of 10 for a VERY Bullish outlook.

Merck & Co., Inc. (MRK) provides various health solutions through its prescription medicines, vaccines, biologic therapies, animal health, and consumer care products.  We believe Merck has an impressive new product pipeline, which should provide long-term growth despite headwinds from expiration losses and drug pricing pressures. In early February 2012, MRK said it planned to file five major products in the U.S. during 2012-2013, including: Bridion, a neuromuscular reversal agent; V503, a vaccine for HPV-associated cancers; odanacatib, a once-weekly oral drug for osteoporosis; tredaptive, an extended
release niacinbased agent for cholesterol reduction; and suvorexant, a potential first-in-class insomnia therapy. We also expect MRK to soon realize the
original $3.5 billion in synergies from its 2009 merger with Schering-Plough.  MRK also has an ongoing $5 billion share buyback program.  MRK has a dividend yield of 4.37% and a 3-year beta of 0.67.  MRK has a PE of 19 with a ROE of 11.5%. Merck has an equity summary score of 8.8 out of 10 for a Bullish
outlook.

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