Since the equity markets are expected to remain uncertain in the near term on several concerns, we think it could be wise to scoop up dividend-paying pharmaceutical stocks, given the industry’s defensive nature. Betting on dividend-paying pharmaceutical stocks Pfizer (PFE), Merck (MRK), and Bristol-Myers Squibb (BMY) should help generate a steady income stream to dodge market volatility. These stocks also have an overall ‘Strong Buy’ rating in our proprietary rating system. Let’s discuss.After the three major stock market indexes posted three straight days of gains, the S&P 500 and Nasdaq Composite ended lower yesterday ahead of key inflation data and nagging COVID-19 omicron variant fears. Amid this market uncertainty, we think it could be wise to bet on quality pharmaceutical stocks, given the industry’s defensive nature. Companies in this space typically witness steady demand for their products and services irrespective of the economic conditions.
Moreover, the industry is expected to grow going forward as the population ages and chronic diseases rise. According to a LINCHPIN report, the pharmaceutical industry is expected to increase to $1.5 trillion by 2023.
Therefore, we think dividend-paying quality pharmaceutical stocks Pfizer Inc. (NYSE:PFE), Merck & Co., Inc. (MRK), and Bristol-Myers Squibb Company (NYSE:BMY) could be solid additions to one’s portfolio to secure a steady income stream. They each have an overall Strong Buy rating in our POWR Ratings system.