After underperforming the overall market for the past few years, large-cap pharmaceutical stocks may now be positioned to outperform as the impact of tariffs on foreign products and services begins to take hold. Many investors who hold pharmaceutical stocks are breathing a sigh of relief, as many of the top companies in the sector are exempt from tariffs due to an executive order signed by the president. While some are anxious to slow the positive momentum in the industry due to tariff exemptions, the reality is that too many essential drugs, including antibiotics, vaccines, and other urgently needed medications, are manufactured overseas. Many in the administration and across Wall Street believe that manufacturing and production should be reshored as soon as possible.
With some pharmaceutical stocks paying 4% and higher dividends, they may be the perfect total return idea for the rest of 2025.
The pharmaceutical stock dividends will look even more substantial as Treasury yields continue to drop.
With the sector on sale, investors may have a great entry point for many of the top companies.
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With approximately $1.6 trillion in global sales, the pharmaceutical industry is a steadily growing sector driven by the rise of personalized medicine, the increase of chronic diseases, and an aging global population. At 24/7 Wall St., we have consistently believed that investing in the pharmaceutical industry offers our readers a range of potential opportunities. Plus, most across the investment world still consider the industry to be defensive in nature, so it is not a bad idea, given the current market volatility.
We screened our 24/7 Wall St. pharmaceutical dividend stock universe, looking for the best large-cap companies that top banks and brokerage firms have current Buy ratings on and pay among the highest dividends in the sector. Four well-known names topped the list; all are safe options for nervous investors now.
Pharmaceutical dividend stocks are a favorite among investors for good reason. They provide a steady income stream and offer a promising avenue for total return. Total return, a comprehensive measure of investment performance, encompasses interest, capital gains, dividends, and distributions realized over time.
At 247 Wall St., we consistently highlight the long-term potential of total return to our readers, as it is one of the most effective ways to boost the prospects of overall investing success. Once again, total return is the collective increase in a stock’s value plus dividends.
AbbVie Inc. (NYSE: ABBV) discovers, develops, manufactures, and sells pharmaceuticals worldwide. It is ranked sixth among the largest biomedical companies by revenue. This stock is one of the top pharmaceutical stock picks on Wall Street and is an excellent choice for long-term ownership.
The company offers:
It also provides:
In addition, the company offers Ozurdex for eye diseases, as well as Lumigan/Ganfort and Alphagan/Combigan for reducing elevated intraocular pressure in patients with open-angle glaucoma or ocular hypertension. The company also offers Restasis to increase tear production, along with other eye care products.
Further, it provides:
This global biopharmaceutical company is committed to discovering, developing, and delivering innovative medicines worldwide. Bristol-Myers Squibb Co. (NYSE: BMY) remains a solid pharmaceutical stock to own in the long term, offering an outstanding entry point with a reliable dividend.
The company offers products in:
Bristol-Myers Squibb products include:
The company also provides:
Truist Financial has assigned a Buy rating to the shares, with a target price of $64
Johnson & Johnson (NYSE: JNJ) is an American multinational corporation specializing in pharmaceuticals, biotechnology, and medical devices. With a diverse product portfolio and a familiar, solid brand, it is among the most conservative of the major pharmaceutical companies. Its primary focus is products related to human health and well-being.
It operates through two segments:
The Innovative Medicine segment is focused on various therapeutic areas, including:
Products in this segment are distributed directly to retailers, wholesalers, distributors, hospitals, and healthcare professionals for prescription use.
The MedTech segment encompasses a diverse portfolio of products utilized in orthopedics, surgery, interventional solutions, cardiovascular intervention, and the vision field. It also offers a commercially available intravascular lithotripsy (IVL) platform for the treatment of coronary artery disease (CAD) and peripheral artery disease (PAD).
Citigroup has a Buy rating with a $185 target price objective.
This top pharmaceutical stock was a massive winner in the COVID-19 vaccine sweepstakes but has been crushed over the past two years as many people are not getting boosters. Pfizer Inc. (NYSE: PFE) discovers, develops, manufactures, markets, distributes, and sells biopharmaceutical products worldwide. It pays a dependable dividend, which has risen yearly for the past 14 years.
The company offers medicines and vaccines in various therapeutic areas, including:
Pfizer also provides medicines and vaccines in various therapeutic areas, such as:
Pfizer anticipates full-year 2025 revenues in the range of $61.0 to $64.0 billion. This includes the expectation that revenues from COVID-19 products in 2025 will be broadly consistent with 2024 after excluding approximately $1.2 billion of non-recurring revenue for Paxlovid in 2024.
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