Is AstraZeneca's Dividend Unbeatable?

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Editor's Note: At 0:33, Fool contributor Dan Carroll intended to note that AstraZeneca's 64% cash payout ratio leaves the company adequate cash to sustain its dividend. The Fool regrets the error.

Big pharma's home to some of the best high-yield dividends on the market, and British drugmaker AstraZeneca's (NYSE: AZN  ) no exception. This stock's 4.7% yield is a big draw for income investors honing in on the long run, but that's not all that's lifted eyebrows around this pick as of late. Pfizer's (NYSE: PFE  ) circling AstraZeneca in its acquisition aims, but while all eyes are on these two competitors squaring off over the buyout dance, is Astra's dividend worth it for investors?

The company's seen sales take a beating as of late, with generic competition pressuring the firm's revenue. AstraZeneca's earnings slipped in its most recent earnings report, and more pain could be on the way. The drugmaker's highly successful blockbuster therapy Nexium loses patent protection this month, while fellow blockbuster Crestor will see patent exclusivity fall away in 2016.

Can AstraZeneca beef up its pipeline and bring in new sales to replace its patent losses and keep its high dividend on course? Find out in the video below, as Motley Fool contributor Dan Carroll takes you through everything you need to know about this high-yielding big pharma stock -- and whether AstraZeneca's on pace for a brighter future.

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Dan Carroll

Dan began writing for the Motley Fool in 2012. He is a health care specialist who also follows the defense industry along with tracking the broader U.S. and international markets.

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Related Tickers

9/3/2015 11:03 AM
AZN $32.50 Up +0.82 +2.59%
AstraZeneca plc (A… CAPS Rating: ****
BMY $60.09 Up +0.48 +0.81%
Bristol-Myers Squi… CAPS Rating: ****
PFE $32.33 Up +0.36 +1.14%
Pfizer CAPS Rating: ****