New York City, US – Despite the S&P 500’s impressive 25% growth over the past year, not all stocks within the index have seen the same success. Some notable healthcare stocks have experienced significant declines of over 25% from their recent peaks. However, amidst these challenges, certain companies like Pfizer, Bristol Myers Squibb, and CVS Health continue to maintain strong dividend programs that show resilience in the face of market volatility.
Pfizer, for instance, has seen a 31% drop in its shares over the last year due to sales declines in its COVID vaccine and antiviral treatment. Nevertheless, the pharmaceutical giant has consistently increased its dividend payout every year since 2009. With a substantial 6.1% yield at present prices, investors can anticipate continued annual raises for the foreseeable future. Despite facing sales setbacks, Pfizer remains optimistic about its future growth trajectory with nine new drugs approved by the FDA in 2023.
Bristol Myers Squibb, on the other hand, has experienced a 35% decline in its shares due to an earnings outlook adjustment following a major acquisition. Despite the short-term challenges, the company’s investment in Karuna Therapeutics could potentially pay off with the FDA considering approval for a groundbreaking new schizophrenia drug. Investors may find this stock appealing due to its low valuation and potential for significant gains in the long run.
Additionally, CVS Health has seen a 27% decrease in its shares from recent highs, driven by challenges in Medicare Advantage revenue and service utilization. However, the healthcare conglomerate continues to offer a high dividend yield of 4.4%, known for its rapid dividend growth. With projections for increased national healthcare expenditure over the next decade, CVS Health is well-positioned to sustain its dividend raises despite current market pressures.
In conclusion, while these healthcare stocks have faced setbacks in the market, their commitment to dividend growth and strategic investments position them favorably for the future. Investors looking for reliable income streams and potential long-term gains may find value in these resilient companies despite recent stock price fluctuations.