Investors don't seem to be all that excited about Merck's
They're wrong -- or at least very short-sighted.
Many of the jobs Merck plans to cut will be on the administrative side. When you integrate a $40 billion company, there's bound to be quite a bit of overlap. The company has already eliminated 12,500 positions since acquiring Schering-Plough, although it's hired for 6,000 new positions over that time as well.
The expanded restructuring program is expected to yield savings of $4 billion to $4.6 billion annually. That's a lot of money that can be used to buy or license new drugs from biotechs. Small companies such as BioSante Pharmaceuticals
Dividend investors might rather see that cash returned to shareholders than reinvested in the company. Looking at the long-term stock chart, they have a decent argument; shares are down 44% over the last 10 years.
But adjusted for dividends, investors fared much better. What's paid for all those dividends? New drug launches created by research and development.
Not convinced? Here are 13 more high-yielding stocks you can buy today.
Fool contributor Brian Orelli holds no position in any company mentioned. Click here to see his holdings and a short bio. The Motley Fool owns shares of Exelixis. Motley Fool newsletter services have recommended buying shares of Exelixis and Pfizer. Try any of our Foolish newsletter services free for 30 days. We Fools may not 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.
More from The Motley Fool
What Happened in the Stock Market Today
On a day stocks bounced up and down, shares of Energizer Holdings rose on acquisition news, and Merck reported positive results in a lung cancer trial.
These 3 Dividend Giants Are Safer Than You Think
Concerns about these stocks and their dividends are overblown.
Why 2017 Was a Year to Forget for Merck & Co. Inc.
Everything looked OK for the drugmaker until Merck delivered an unwelcome October surprise.