3 surplus dividend stocks are bought in the stock market

Stock market crashes and corrections. Since the beginning of the year, it has been Standard & Poor’s 500 It has decreased by more than 17%. In fact, since the end of World War II, the benchmark has fallen by more than 10% about 30 separate times.

a alcohol market At least a 20% drop will eventually happen again, maybe even this month. Rising inflation, intractable supply chain problems, and the Federal Reserve’s intent to raise interest rates to combat wild price increases all make the possibility even greater.

Golden bear standing in front of a falling stock chart.

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Louis Federal Reserve Bank President James Bullard said it was “a fantasy” to think that the worst inflation the US had seen in 40 years could be tamed by manipulating it. He pointed to the need for significant increases in interest rates to the point where economic growth stops, perhaps even decades.

But even if a bear market occurs, it is important to keep such contractions in perspective. The Schwab Center for Financial Research says the average bear market lasted only about 17 months.

This suggests that investors should not be afraid in the face of a downturn, but rather they should be prepared to launch into action. The following 3 Super Stocks are good bets for hitting the low points of any of them revision and beyond.

Technician with pills in the lab.

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Abvi

Pharmaceutical giant Abvi (ABBV -0.51%) Still depend on it Turnout The anti-inflammatory drug Humira is the bulk of its revenue — $4.7 billion in the first quarter, or 35% of the total $13.5 billion — but the emergence of biosimilars will eventually take its toll.

Internationally, Humira’s revenue fell 22% in the quarter to $743 million due to new competition, and they’ll start showing up in the US next year when Humira goes out for a patent. But the cliff is not as steep as previously thought. Humira has multiple indications that it has been approved in the United States and abroad, so it will continue to be a widespread growing treatment for years to come despite the existence of biosimilars.

and AbbVie He has other great medicines which is also growing. Skyrizi revenue was nearly $1 billion in the first quarter, up 66%, representing 23% of Total prescription share in the biological materials market in the United States. Meanwhile, rheumatoid arthritis treatment Rinvoq saw revenue jump 57% to nearly $500 million. AbbVie’s neuroscience portfolio also contributed approximately $1.5 billion in revenue (up 20%) and its aesthetic portfolio generated another $1.4 billion (up 22.5%).

AbbVie is a solid growth company and pays a dividend of 3.7% annually. Since its inception in 2013 as a branch of Abbott LaboratoriesAbbVie has increased its dividend by more than 250% and raised it every year. Inheriting Abbott’s dividend history, it is also considered a file Dividend Aristocrat.

A nurse gives a patient an injection.

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Pfizer

Pfizer (PFE -0.93%) She is another pharmaceutical giant that, after the start of the pandemic, is all about COVID-19 vaccines. Comirnaty, the vaccine developed by Biotechnology, generated $13.2 billion in first-quarter sales as global demand for pediatric doses and booster shots increased. This represents 89% of Pfizer’s vaccine portfolio as well as 51% of total revenue. With the drug company now seeking approval for booster shots for children ages 5 to 11, this niche still has plenty of legs to grow.

Paxlovid, Pfizer’s oral treatment for the coronavirus, has also gained ground, growing 72% year-over-year, despite unfavorable currency exchange rates. It brought in nearly $1.5 billion in sales and is expected to contribute $22 billion for the full year based on supply contracts signed so far this year.

With Comirnaty expected to generate $32 billion in full-year sales, the two treatments will represent between 53% and 55% of full-year revenue. The rest of its Covid-related portfolio boosts that to about 60% of the total, raising the specter of Pfizer Heavy reliance on COVID-19 products.

This is certainly the case at the moment. But with more than two dozen Phase III trials underway, Pfizer has a better-than-average chance of finding more than a few winning treatments to boost its business once the immediate threat of COVID-19 wears off.

Stock is too Trading at a big discount 11 times delayed earnings and 9 times next year’s estimates — plus just 13 times free cash flow. With a dividend of 3.2% per year, it has been paying since 1980 and increasing its dividend every year since 2009 (it had halved its dividend earlier that year when it was going to buy Wyeth).

The pharmacist dispenses the prescription.

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Walgreens Boots Alliance

Healthcare retailer Walgreens Boots Alliance (WBA 0.90%) It’s down 17% so far in 2022, but the upcoming recession shouldn’t be a major factor in whether pharmacy stock goes up or down. Regardless of the economy, people get sick, perhaps even more so in bad times.

But Walgreens has been working on a cost-cutting program that wiped out $2 billion in expenses ahead of schedule, while its transformational plan is said to be on track to achieve annual cost savings of $3.3 billion by fiscal year 2024 (which begins in September of next year). .

although Second quarter earnings whirlwind It caused investors to dump its shares, sales continued to grow, operating income rose, and the retail footprint saw similar record sales with gains of nearly 15%. It’s also a solid dividend stock, with 46 consecutive years of increasing return, which puts it on track to be king of profits In a few years. And because her financial position is strong and she can easily cover her payments, that shouldn’t be a problem.

With a generous dividend of 4.4% and its stock is cheaper than Pfizer with six times consecutive earnings and eight times estimates (the free cash flow multiplier is slightly higher at around 19), it’s a good pick for a growing dividend stock to safely stabilize during market turmoil.