Top 6 Oncology Stocks to Buy for Income
Oncology stocks cater to the philanthropic investors out there. But caring about our fellow humans can pay some nice income, too.
And just because you are helping a great cause doesn’t mean you have to give up great returns. In fact, these cancer stocks have better dividend yields than many other stocks out there.
Investigate these income producing oncology stocks. You’ll like them for their great returns on top of high dividend payments.
- AstraZeneca (Nasdaq: AZN)
- Merck & Co. (NYSE: MRK)
- AbbVie Inc. (NYSE: ABBV)
- Eli Lilly and Company (NYSE: LLY)
- Gilead Sciences, Inc. (Nasdaq: GILD)
- Pfizer Inc. (NYSE: PFE)
Oncology Stocks to Buy
No. 6 AstraZeneca
AstraZeneca is an oncology stock that provides treatment options for many medical areas. Along with oncology, it produces therapies for issues with the heart, lungs and immune system.
On top of being very profitable, it’s driven to find cures for their patients. The cancer part of the business is particularly ambitious. With goals to find cures for all cancer types, cutting edge science is necessary.
AstraZeneca’s market cap is over $177 billion. So, they aren’t hurting for money. And the stock isn’t volatile.
In addition, it provides a nice dividend, which is currently almost 2.5%. Plus, even though they only pay out twice a year, investors earn a larger sum for the second round.
Revenue and profits are very high for this oncology stock. Profit is well over $2 billion for the past two years. And revenue grew by 6% from 2019 to 2020. It was well into $20 billion, and coming close to $30 billion in 2020.
No. 5 Merck & Co.
Merck is an oncology stock with an even better dividend yield than AstraZeneca. At almost 3.5%, you could make some great income flow. But, when you have a high dividend yield, you must make sure the company is financially sound.
Usually, when a business offers a high yield, it’s because they are trying to attract new investors. It indicates that something is going on under the surface.
But revenues are high and net profits margins are even higher than Astra. So, in this case, it’s probable that Merck is paying forward their profits to their investors.
This oncology stock also caters to several markets. In this case, those are cardio-metabolic disorders. And, vaccines and infectious diseases. And of course, oncology.
They are working on a cure for cancer. And in the meantime, looking for preventions and treatments to keep it in check.
No. 4 AbbVie Inc.
AbbVie has a huge market cap of about $242 billion. It’s a steady and slow-growing stock, with visions for the future.
AbbVie has excellent profit margins, and great revenue, too. The leadership seems incredibly competent. And that’s reflected on the income sheets.
This oncology stock is a biopharmaceutical company. AbbVie is a prominent player in immunology, oncology and neuroscience. But they also provide eye care and virology solutions.
And to top it off, AbbVie’s dividend yield is phenomenal, over 4%.
No. 3 Eli Lilly and Company
This oncology stock has a large market cap, too. It’s at almost $250 billion.
Eli Lilly’s dividend yield is down, and so are profits. But revenues are holding strong, and still growing. Another slow and steady grower, stock has really ramped up the past couple of years.
One interesting fact about this company is that it was founded in 1876. Not only that, but it was also founded and named after Colonel Eli Lilly. He was a Civil War veteran and chemist who made medical drugs.
There’s an investment company that buys and sells shares of other businesses. And it manages a portfolio of over $1.2 billion. It then offer shares of their own company to other investors. This company is called Cacti Asset Management. And it recently purchased Eli Lilly and Co.
Other top investments in this portfolio include Apple, Goldman Sachs and American Express. Cacti owns 77 stocks total. And now, I’m sure AbbVie is proud to be one of them.
Oncology Stocks No. 2 Gilead Sciences, Inc.
The market cap of this oncology stock is bit smaller than most of the others on this list. However, that’s not a bad thing. In fact, it sits just above $90 billion.
And that could be high enough to keep things away from volatility. But, also small enough, as far as biopharmaceutical companies go. Small enough, that is, to give higher than average returns.
There is a lot of talk surrounding Gilead. Their net profit margins are phenomenal, which is always a sign of success. Revenue is also up by a lot. The dividend yield is almost 4%.
Their mission is to simplify care and help those with fatal diseases all over the globe. The company is also hiring, which is good sign of expansion and growth in the company.
In 2021, Gilead attended about 12 different healthcare conferences and summits. Many of them were sponsored by large companies like Goldman Sachs and J.P. Morgan.
It’s obvious they are working to grow and connect.
Oncology Stocks No. 1 Pfizer Inc.
Pfizer’s net profit margins and revenues are up by triple digits. It was founded in 1849. And now, it has a market cap of over $314 billion.
Pfizer has solutions and treatments for many different types of cancer. Those include but are not limited to lung cancer, kidney cancer and lymphoma.
It’s obvious that Pfizer has no problem creating revenue and business for itself. This oncology stock is a great choice for those who want long term, steady growth. And, a little dividend income on top.
“The Final Word” and More Opportunities for Oncology Stocks
While they help people who need it most, oncology stocks can also be some great sources of income. It’s a win-win-win situation! You win because you get the satisfaction of helping inch closer to a cure for cancer. You also get nice returns for doing so.
The company wins because they have some more money to grow their business. And the patient wins because they are getting closer to a cure for cancer. And they are getting the treatment they need to become healthy again.
Always do your full due diligence into every company you invest in.