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2 Undervalued Stocks With Strong, Secure Dividends

Damien Conover, CFA

Damien Conover: When looking at investing, dividend yield is really important, and in the large-cap pharmaceutical landscape there are certain stocks that have very strong yields. Both Pfizer and Bristol are these two stocks that we're highlighting today. Both stocks have been well positioned for growth, and both stocks do look undervalued with their dividend yields a little bit over 3%, and strong earnings growth, we think these are stocks that will not only provide good earnings growth, but provide a strong secure dividend, and really the crux of this for both stocks is the next generation of drugs. 

For Bristol, they're very focused in oncology and also in process of acquiring Celgene, a deal that we think will go through, and support its overall economic moat. For Pfizer, it's a little bit more of a  diversified company. It is focused in oncology, but it's also focused in other areas. I'd say the overarching theme for Pfizer is looking at areas of unmet medical need, and that's really important for pricing drugs. With strong pricing, that should really fuel the earnings growth, and support Pfizer's overall dividend yield. 

When thinking about investing, I think it's important both for capital appreciation, but also the dividend yields perspective, and both these stocks, Pfizer and Bristol, look well positioned on both fronts.

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Damien Conover: When looking at investing, dividend yield is really important, and in the large-cap pharmaceutical landscape there are certain stocks that have very strong yields. Both Pfizer and Bristol are these two stocks that we're highlighting today. Both stocks have been well positioned for growth, and both stocks do look undervalued with their dividend yields a little bit over 3%, and strong earnings growth, we think these are stocks that will not only provide good earnings growth, but provide a strong, secure dividend, and really the crux of this for both stocks is the next generation of drugs. 

For Bristol, they're very focused in oncology and also in process of acquiring Celgene, a deal that we think will go through, and support its overall economic moat. For Pfizer, it's a little bit more of a  diversified company. It is focused in oncology, but it's also focused in other areas. I'd say the overarching theme for Pfizer is looking at areas of unmet medical need, and that's really important for pricing drugs. With strong pricing, that should really fuel the earnings growth, and support Pfizer's overall dividend yield. 

When thinking about investing, I think it's important both for capital appreciation, but also the dividend yields perspective, and both these stocks, Pfizer and Bristol, look well positioned on both fronts.

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