A Strong Dividend Yield for Undervalued Novartis
New products in the pipeline can help the pharma firm continue to raise its payout.
Damien Conover: In looking at opportunities for dividend-yielding stocks, one stock we're highlighting is Novartis. This is a big pharmaceutical company that is focused on several different therapeutic areas, including generic drugs as well as areas within the ophthalmology space.
The reason why we like Novartis is, we think it's undervalued from a stock standpoint, but also has the potential for really strong dividend yield for quite some time. Right now it's over a 3% dividend yield. It's been raising its dividend over the last 20 years, so we think there's opportunity for further dividend increases.
Damien Conover does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.
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