Following the investment moves of billionaires can offer valuable insights into the stock market. While it’s important to conduct your own research before investing, it can be beneficial to see what successful investors are doing.
Two dividend stocks that caught the attention of some billionaires in the last quarter are Pfizer and Merck.
Pfizer, despite recent underperformance, has drawn interest from investors like John Overdeck of Two Sigma Investments and Ken Griffin of Citadel Advisors. The company’s success in developing COVID-19 vaccines has boosted its pipeline, with promising new products in development. Pfizer’s acquisition of Seagen for $43 billion has also expanded its capabilities in oncology. Additionally, Pfizer has a strong track record of dividend growth, making it a solid income pick for long-term investors.
Merck, another major drugmaker, has also attracted billionaire buyers like Israel Englander of Millennium Management Holdings. The company’s flagship therapy, Keytruda, is a top-selling cancer treatment and a significant revenue driver. While Keytruda’s patent exclusivity will expire by 2028, Merck is working on new formulations and has a pipeline of innovative products in development. The company’s dividend has increased by 75% over the past decade, offering a forward yield of over 2.45%.
Both Pfizer and Merck present compelling investment opportunities for income-seeking investors looking for long-term growth potential.