2 High-Yield Dividend Stocks to Hold Through 2025 and Beyond

Core Viewpoint - The article emphasizes the importance of a company's underlying business over its yield for dividend seekers, highlighting that some companies can provide both a strong business foundation and attractive yields [1]. Group 1: Bristol Myers Squibb - Bristol Myers Squibb is a leading drugmaker with a diverse portfolio, including several drugs generating over $1 billion in annual sales [3]. - The company experienced a period of slow revenue growth due to a patent cliff but rebounded with an 8% year-over-year revenue increase to $11.9 billion in the third quarter [4]. - Older products like Eliquis continue to perform well, with sales increasing by 11% year over year to $3 billion [5]. - Newer products, particularly Reblozyl, are contributing significantly to growth, with its revenue reaching $447 million, an 80% increase from the previous year [6]. - Bristol Myers Squibb is expected to manage upcoming patent cliffs effectively, with newer products and label expansions supporting continued financial strength and dividend sustainability [7]. - The stock has a forward yield of approximately 4.2%, significantly higher than the S&P 500's 1.3%, and has increased its payouts by nearly 38% over the past five years [8]. Group 2: Novartis - Novartis is another major player in the pharmaceutical industry, with 11 medicines generating over $1 billion in sales for 2024 [9]. - The company's top-selling drug, Entresto, saw a 26% year-over-year sales increase to $1.9 billion, while Cosentyx generated $1.7 billion, up 27% from the prior year [10]. - Total sales for Novartis reached $12.8 billion, reflecting a 9% increase compared to the previous year [10]. - Although Cosentyx's U.S. patent is set to expire, Novartis has a robust pipeline with 105 programs, including new medicines like Fabhalta, which is in the early stages of commercialization [11]. - Novartis has successfully increased its dividend for 27 consecutive years, with a forward yield of about 3.7% and a cash payout ratio just under 62% [12][13].