Many billionaires are active on Wall Street and have built their wealth through investing. It’s important to pay attention to their moves and the stocks they invest in to learn from their strategies. However, blindly following anyone, billionaire or not, is not recommended when trying to grow wealth. Conducting research on our own is essential.
During the last quarter, at least a couple of billionaires purchased shares of two dividend stocks: Pfizer (NYSE: PFE) and Merck (NYSE: MRK).
1. Pfizer:
Despite recent underperformance, Pfizer has played a crucial role in developing vaccines and medicines for COVID-19. Some billionaires, such as John Overdeck’s Two Sigma Investments and Ken Griffin’s Citadel Advisors, have increased their holdings in Pfizer. The company has expanded its pipeline and is developing new products to replace its existing therapies as patents expire. Pfizer’s dividend streak is attractive, with consistent increases in payouts over the past decade and a forward yield of 5.86%.
2. Merck:
Merck, another major drugmaker, saw interest from billionaire investors in the first quarter. Keytruda, one of Merck’s top-selling therapies, continues to drive growth for the company. While some may view Merck’s reliance on Keytruda as a concern due to patent expiration, the company is working on new formulations and products to sustain growth. Merck’s dividend has also seen significant increases over the past decade, with a forward yield of 2.45%.
Both Pfizer and Merck present opportunities for long-term investors, especially considering the backing from billionaire investors. It’s important to conduct thorough research and consider all factors before making investment decisions.