Why Teva Pharmaceutical's Stock Is Worth Owninghttp://www.fool.com/investing/dividends-income/2012/12/07/why-teva-pharmaceuticals-stock-is-worth-owning.aspx Chuck Saletta
December 7, 2012
The second selection for the newly launched Inflation-Protected Income Growth Portfolio is generic medication powerhouse Teva Pharmaceutical (NYSE: TEVA). As the largest generic drugmaker in the world , the company is well positioned to survive and thrive in a cash-constrained environment for medical care. With its 2011 purchase of Cephalon, Teva also enhanced its branded drug business and pipeline, making higher (though riskier and more variable) returns possible.
With its history of rising dividends that stretches back at least a dozen years, the company's shareholder-friendly behavior predates the Bush dividend tax cuts and thus will likely not be derailed if they expire. With its focus on generics, even if the critics of Obamacare are correct that the legislation will stifle medical innovation, there will still be a demand for Teva's core products. And with a respectably low payout ratio of 32%, it has considerable coverage even if things do go bad.
Why it's worth owning in the iPIG Portfolio
Balance sheet and valuation: