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Top 10 Stocks for Your IRA: Novartis

This video is part of our "Motley Fool Conversations" series, in which Million Dollar Portfolio advisor Charly Travers and Motley Fool Stock Advisor analyst Jason Moser discuss topics around the investing world.

Charly and Jason are bringing you 10 stocks that you can buy and hold for the long term in your IRA to maximize its tax advantages. Charly likes the pharmaceutical companies for their high dividend yields (currently 3% to 4% for most of the global names) and their defensive characteristics (people need to use drugs in all economic environments). Of the world's largest pharmaceuticals, Novartis earns the top grade because of its diversified product portfolio and leadership position in the development of biosimilars.

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Charly Travers and Jason Moser have no positions in the stocks mentioned above. The Motley Fool owns shares of Johnson & Johnson. Motley Fool newsletter services recommend Johnson & Johnson, Novartis, and Pfizer. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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  • Report this Comment On April 11, 2012, at 1:05 PM, gerrythek wrote:

    Novartis (and other European companies) are stocks which suffer within an IRA. This is exactly the type of drug stock which you DON'T want in an IRA.

    Novartis will withhold approx. 20% of the dividend for Swiss taxes. While you may recover part of this on your US taxes, this is NOT an option within an IRA. Any non-England European company has the same problem in an IRA.

    Within your IRA, you have to figure on a dividend of 80% of the stated yield. Looked at this way, Novartis suffers in comparison with Pfizer or Merck as drug stocks in an IRA.

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Related Tickers

10/20/2014 9:44 AM
NVS $86.80 Up +0.17 +0.19%
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