Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Is There Hope for This Top Dividend?

2013 has been a tough ride for AstraZeneca (NYSE: AZN  ) investors. This big pharma stock has barely inched higher on the year -- shares have gained just around 4% year-to-date, far outperforming many of its pharmaceutical rivals. The big questions around AstraZeneca fall back to the patent cliff. The company has already seen sales hit hard this year due to patent losses, but the worst could be yet to come, as top sellers such as Nexium and Crestor lose patent protection in the U.S. and abroad in the coming few years.

For dividend investors, this perfect storm of falling sales and coming patent losses is making AstraZeneca's dividend's future look especially dicey. The company has long had one of the top dividends in the health care sector, and while AstraZeneca's dividend payout ratio is high, it's less than some of the company's rivals. However, AstraZeneca's coming patent losses has some questioning whether the company can afford to keep up that high dividend.

Should you put your faith in this dividend stock? In the video below, Fool contributor Dan Carroll tells you what's ahead for AstraZeneca in the near future -- and what it means for dividend investors concerned about AstraZeneca's yield.

AstraZeneca and other big pharma giants have long been havens for income investors looking for high-yielding picks. However, the patent cliff's impact on the industry's sales recently show the critical importance of diversifying your portfolio -- seeking high-yielding stocks from multiple industries. The Motley Fool's special free report "Secure Your Future With 9 Rock-Solid Dividend Stocks" outlines the Fool's favorite dependable dividend-paying stocks across all sectors. Grab your free copy by clicking here.

Read/Post Comments (0) | Recommend This Article (3)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2625469, ~/Articles/ArticleHandler.aspx, 8/24/2016 6:37:20 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 9 hours ago Sponsored by:
DOW 18,547.30 17.88 0.10%
S&P 500 2,186.90 4.26 0.20%
NASD 5,260.08 15.48 0.30%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

8/23/2016 4:03 PM
AZN $33.83 Down -0.02 -0.06%
AstraZeneca CAPS Rating: ****
BMY $59.86 Up +0.60 +1.01%
Bristol-Myers Squi… CAPS Rating: ****
JNJ $119.44 Up +0.31 +0.26%
Johnson and Johnso… CAPS Rating: *****
MRK $63.58 Up +0.03 +0.05%
Merck and Co. CAPS Rating: ****