Is Teva's Dividend Safe?

Teva Pharmaceuticals (NYSE: TEVA  ) is the world's largest manufacturer of generic drugs. The company pays a solid dividend and has been a strong performer over the past decade thanks to growing demand for low-cost medicine.

Despite that demand growth, however, the company faces a big risk to its revenue given the recent patent expiration on one of its best-selling specialty medicines. As a result, dividend investors are right to wonder whether a potential sales slide threatens Teva's dividend payout.

In the following slideshow, you'll learn more about Teva's patent risk, risk to its profitability, and how Teva compares to big drug makers like Merck and Pfizer when it comes to its dividend payout.

Top dividend stocks for the next decade
The smartest investors know that dividend stocks simply crush their non-dividend paying counterparts over the long term. That's beyond dispute. They also know that a well-constructed dividend portfolio creates wealth steadily, while still allowing you to sleep like a baby. Knowing how valuable such a portfolio might be, our top analysts put together a report on a group of high-yielding stocks that should be in any income investor's portfolio. To see our free report on these stocks, just click here now.

 


Read/Post Comments (3) | Recommend This Article (1)

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.

  • Report this Comment On June 06, 2014, at 8:22 PM, annoyed wrote:

    it seems to me the FDA is constantly giving Teva a very rough time. I wonder wghy???

  • Report this Comment On June 06, 2014, at 8:26 PM, annoyed wrote:

    In addition to the FDA the the FTA also gives Teva an uncomfortable time with their products. I wonder why???

  • Report this Comment On June 07, 2014, at 12:28 PM, DanTheMan1984 wrote:

    This slideshow is absurd. First off Teva has been switching people from the daily dosage of Copaxone to three times a week, and have been very successful so far which was one of the factors driving up the share price.

    Secondly, Copaxone has been on the market for over 20 years you think people are just going to abandon it overnight? Copaxone is a complex molecule and has a record being very safe for it's time on the market where generic versions do not, plus if generic companies due launch there at risk in having paying fines later down the road should Teva be successful in court.

    It's not like Teva is going to lose 100% of there profits and revenue from Copaxone. I mean Pfizer kept a decent amount with Lipitor...

    Anyways the author should try doing some research instead of hashing out the same old Copaxone "fear" story.

    LONG TEVA>

Add your comment.

DocumentId: 2985755, ~/Articles/ArticleHandler.aspx, 7/22/2014 7:31:31 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...


Advertisement