A well balanced and strong portfolio is the one which includes high yielding strong dividend stocks as an integral part, these strong dividends are hefty extensive investing instruments. Selecting good and bad capital stocks is however a different thing altogether. However high yields are never a guarantee for successful stocks.Many companies with weaker portfolios can create artificial high yields to become catchier in the market.
Similarly lower yield stocks might be unattractive but they have the tendency to rise in a short span of time, so there is a lot at stake while choosing the best stock for investing. The two health care companies AbbVie (NYSE:ABBV) and Pfizer (NYSE:PFE) gather hefty interests from investors because of developed goodwill, management, growing dividend returns over time, and their strong cash flows. Both companies currently are at different rigorous stages of their business life cycle.
It might be a little difficult to determine which one is the best because of their goodwill in the health care sector.On one hand is AbbVie (NYSE:ABBV) whose revenue and dividend are both increasing at a steady rate. The company enjoys increased and strong sales in producing Humira an anti-inflammatory drug in which it has a flagship. The company announced its third quarter reports and claimed to increase its dividend by 17% and shares from $0.42 to $ 0.49 from the start of 2015.
At the current stage the increase in dividend can deliver a yield of 3.07%, easily crossing the central tendency of 2.4%. In addition to attracting more costumers the company upgraded its share buyback by $5billion. Although the company is expected to grow more through its flagship drug humiraits launch of Hepatitus C’s treatment which is expected next year would have a strong impact as well. Experts after analyzing the company’s earnings per share expect its dividend to increase by 27% in 2015.
This means the company is soon going to generate more profits. However with all these attributes the company is still operating under great risks as the Humira patent is to be expired next year. The company is also going to face strong competition regarding its Hepatitus C drug treatment. In short, only time can tell if AbbVie (NYSE:ABBV) can keep up with the incoming challenges or not.Pfizer (NYSE:PFE) on the other hand is also a top health care name however not a high yielding dividend stock company.
The company’s revenues are decreasing which fell 2% last year in the third quarter as it lost the competition of a flagship regarding its Lipitor drug. However the company has also announced to increase $11billion to its share repurchase program that will be helpful in buying back $12billion of its own shares from the market to hold and stabilize the share prices as its earning per shares continue to decline. The company is playing a wild card here that could result in either a major breakup or a deal that can restore the company’s obstructed growth engine.