Dividend investors don’t like payout decreases or suspensions, hence the importance of finding companies that are unlikely to resort to these moves. But that’s not always easy.
There are plenty of dividend stocks on the market. Many will end up disappointing investors. We recently saw two such examples — Medical Properties Trust and Walgreens Boots Alliance — two high-profile dividend payers which slashed their payouts over the past six months.
Investors on the market for dividend stocks that are unlikely to see a payout drop over the long run should find what they seek in Novartis (NYSE: NVS) and Visa (NYSE: V). Read on to discover why.
Novartis: Developing drugs will never be out of style
The pharmaceutical industry is a great place to look for “forever” stocks. Drugmakers develop lifesaving medicines, a business that will be in high demand as long as people fall ill. In fact, demographic trends will increase demand for pharmaceutical products, an interesting consequence of significant medical innovations over the past 100 years.
People live longer, the world’s population is aging, and older people need more medical care. Novartis is one of the largest companies in the field and operates across several major therapeutic areas. Last year, the company’s net sales increased by a solid 8% year over year to $45.4 billion; its earnings per share came in at $6.47, 18% higher than the previous fiscal year.
The company also made one major change to its business. Novartis spun off its generic and biosimilar unit Sandoz into a stand-alone business, a transaction it completed in October. The new Novartis will be focused on its core biopharmaceutical operations, where it will direct more research and development spending to help speed up pipeline and regulatory progress and accelerate growth.
The company currently has more than 100 programs in its pipeline. Last year, it reported positive data from phase 3 studies for two investigational drugs: remibrutinib, being investigated for the treatment of chronic spontaneous urticaria (chronic hives); and atrasentan in treating a…
..
