With Eli Lilly experimenting with a new drug for Alzheimer’s disease, we decided to check Quant Ratings for pharmaceutical stocks to buy. The companies we chose also pay high dividends. Eli Lilly taking a risk on this new drug is nothing new to the industry. The sector is full of risks: Drugs in development might flop; the FDA might not approve them, and even if they are approved, there’s a chance those drugs won’t sell. That said, there are benefits from investing in pharmaceutical stocks. The companies are protected by patents, and those patents allow them to recoup their research and development investments, and then some, should they produce a popular drug. Here are some of the best pharmaceutical companies, that pay high dividends, TheStreet Quant Ratings says you should consider looking at. Number 3 is Pfizer. With an ‘A-‘ rating, the company’s strengths can be seen in its solid stock price performance and expanding profit margins. 2nd is, Johnson & Johnson. This rating is also an ‘A-.’ Johnson & Johnson thrives in its expanding profit margins and increase in net income. Number 1 is Novartis AG. This too has an ‘A-‘ rating the company flourishes in its compelling growth in net income and good cash flow from operations. TheStreet Ratings are algorithmic stock picks based on 32 major data points. S&P 500 stocks rated ‘buy’ yielded a 16-and-a-half-percent return in 2014, beating the S&P 500 Total Return Index by more than 300 basis points. For the full reports on these stocks, you can check out TheStreet.com/QuantRatings.
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