Not all dividend stocks are created equal. Some are safer and offer higher dividend yields, making them worth considering for your investment portfolio. Three Motley Fool contributors recently highlighted stocks with attractive dividends that are worth buying: Gilead Sciences (NASDAQ: GILD), Organon (NYSE: OGN), and Pfizer (NYSE: PFE).
Gilead Sciences is a leading biotech company with a current dividend yield of 4.80%, significantly higher than the S&P 500 average. Despite recent underperformance, Gilead Sciences remains strong in the HIV drug market and continues to innovate in oncology, vaccines, and other therapeutic areas. The company’s dividend payouts have increased by 79% over the past decade, indicating a commitment to rewarding shareholders.
Organon, spun off from Merck three years ago, focuses on women’s health and offers a dividend yield of 5.4%. While the company has not raised its dividend, its low payout ratio suggests room for potential growth. Organon has shown consistent profitability and free cash flow, attracting investors and driving a 40% increase in its stock price this year.
Pfizer, a major drugmaker, boasts a forward dividend yield of over 5.8% and is dedicated to maintaining and growing its dividend. Despite challenges such as declining COVID-19 product sales and upcoming patent expirations, Pfizer is investing in research and development to drive future growth. The company projects significant revenue growth from new products and acquisitions by 2030, offering investors both dividend income and growth potential.
Overall, these three stocks offer attractive dividends and strong growth prospects, making them compelling options for income-focused investors. Before investing in any stock, it’s essential to conduct thorough research and consider your investment goals and risk tolerance.