Biotech Theravance (NASDAQ: THRX) is undergoing a radical transformation. Is this special situation a unique opportunity for dividend investors, or arre problems lurking beneath the surface.

Theravance recently split in two, with the money it earns fromsucessful COPD drugs continuing under the old ticker and paid out as a juicy dividend, while the drug-development arm is reborn as Theravance Biopharma.

In this video, Motley Fool Healthcare analyst David Williamson evaluates the dividend stock using a World Cup inspired grading system: a yellow card is a warning for investors, a red card is an ejection, and a "goal" happens if the stock looks like a winner. 

Watch and find out the current strengths and weaknesses of Theravance and if investtors should jump on this special dividend situation.


David Williamson has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 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.