3 Biotech Stocks to Buy

Due to the growth of chronic diseases, the pharmaceutical industry will go from $1.2 trillion in 2019 to $2.2 trillion by 2027.

This bright future means a great time for pharma stocks. Here are the ones that are strong and have cheap valuations.

Johnson & Johnson

The company is number one with dividends. Also, its payout has been the longest in all of healthcare. Just last year, the payout was 42.8%. This will be reinvested in the company to grow future earnings.

An annual 6.4% is expected for the next five years, meaning a dividend increase in the future.

Currently, they have over 40 products in phase 2 and phase 3 (clinical trials), which will eventually be a success.

Amgen

Amgen began paying a dividend just twelve years ago. Since then, its dividends have risen, meaning the company is a Dividend Contender. Continuous dividend growth is expected for the future.

Amgen has 40 compounds at different phases, and its advances cover different areas like oncology, inflammation, and bone. Because of this and the company’s pipeline, an annual earnings growth of 7% is expected in the next five years.

Pfizer

Now is a great time to buy from the innovative COVID-19 company, Pfizer.

The company’s antiviral pill called Paxlovid and the COVID-19 vaccine (developed with BioNTech) represent a big growth for Pfizer.

Besides COVID-related products, Pfizer had revenue growth of 6% in 2021 thanks to products like anticoagulants (co-owned with Bristol Myers Squibb), as well as Vyndaqel and Vyndamax, which both are drugs for rare heart diseases.

There is a 10% annual growth on earnings expected for the next five years, and with a dividend payout ratio of 35.3% last year, there is room for more dividend growth in the future.