Two Pharmaceutical Giants to Hold for Decades
Johnson & Johnson and Merck are two dividend-paying companies that stand out as excellent long-term picks. Both have demonstrated impressive financial results, innovative abilities, and robust pipelines.
Johnson & Johnson has increased its payouts for 64 consecutive years, making it a Dividend King. The company's strong financial performance, driven by its diversified product lineup across pharmaceuticals and medical devices, has led to a 28% stock gain this year compared to the S&P 500's 10%. Its recent approvals include ICOTYDE, a medicine for plaque psoriasis, while its Ottava robotic-assisted surgery system, which could become an important growth driver, has received marketing authorization.
Merck, on the other hand, faces increased competition for its biggest growth driver, Keytruda. However, the company has formulated a plan to overcome the patent cliff by earning approval for a subcutaneous formulation of the medicine, which is faster to administer and will help it retain patients beyond the original formulation's patent cliff.