3 Dividend-Paying Drug Stocks to Buy at a Discount

Group 1: Dividend Yields and Company Performance - The S&P 500 index offers a dividend yield of 1.2%, while major pharmaceutical companies like Pfizer, Bristol Myers Squibb, and Merck provide significantly higher yields, with Pfizer at 7% [1] - Pfizer has a 7% yield and has increased its dividend annually for 15 years, but has a high payout ratio of 90%, raising concerns about future dividend sustainability [2][3] - Bristol Myers Squibb has a 5.6% yield and a payout ratio of 99%, indicating potential risks associated with its dividend despite 19 years of annual increases [6][7] Group 2: Strategic Moves and Acquisitions - Pfizer announced plans to acquire Metsera for $4.9 billion to enhance its drug pipeline, which may increase the risk of a dividend cut due to its high payout ratio [3][4] - Bristol Myers Squibb has been active in acquisitions, including oncology-focused Mirati Therapeutics and RayzeBio, as well as neurology-focused Karuna Therapeutics, to strengthen its drug pipeline ahead of upcoming patent losses [6][8] - Merck has a lower yield of 3.7% but has more flexibility to protect its dividend compared to Pfizer and Bristol Myers Squibb [7]