Three Motley Fool contributors have identified stocks with attractive dividends that are worth considering. Gilead Sciences, Organon, and Pfizer are among their top picks.
Gilead Sciences stands out with a high dividend yield of 4.80%, significantly higher than the S&P 500 average. Despite recent underperformance, the company remains strong in the HIV drug market and continues to innovate in oncology and other areas. With a history of increasing payouts and a focus on developing lifesaving medicines, Gilead Sciences is positioned for long-term success.
Organon, a spin-off from Merck focusing on women’s health, offers a dividend yield of 5.4%. Despite limited dividend growth, the company’s low payout ratio and consistent earnings suggest potential for future increases. With steady revenue projections and a track record of generating free cash flow, Organon is an appealing dividend stock with room for growth.
Pfizer, known for its forward dividend yield of over 5.8%, is committed to sustaining and expanding its dividend. While facing challenges such as patent expirations and declining COVID-19 product sales, Pfizer is investing in research and development to drive future revenue growth. With a focus on new products and acquisitions, Pfizer’s growth potential and attractive valuation make it a compelling investment opportunity.
In conclusion, these stocks not only offer great dividends but also demonstrate potential for long-term growth and value appreciation. Investors looking for reliable income and growth prospects may find Gilead Sciences, Organon, and Pfizer to be appealing choices in their portfolios.