FYI: With their strong free cash flows, large-cap pharmaceutical/biotech companies can be a good place to look for yield. So, as earnings season nears, Barron’s looked for members of the group with yields above 2% and payout ratios below 60%.
David Risinger, who covers the sector for Morgan Stanley, expects the new federal tax code to help pharma/biotech outfits, particularly by letting them repatriate overseas cash after paying a one-time tax. The money could fortify dividends. And, as Risinger wrote in a recent note, “Each major pharma company could benefit from additional pipeline assets.”
Regards,
Ted
http://www.cetusnews.com/business/The-Right-Rx-for-Income-Investors.Hk2WGXPNM.html
